"Gold in the hands of the public is an enemy of the state." ~ Adolf Hitler

"The claims that Gold and Silver are in a bubble are as stupid as they are humourous. Money is never in a bubble; the USDollar is where the bubble is found." ~ Jim Willie

"Fed critics, again mostly [from the] Austrians [School of Economics which favors gold backed currency], have argued since 2008 that normal monetary policy would never return, that QE would never be unwound, and that artificially low (or even negative) interest rates were here to stay. In other words, that the Fed and its 300 Ivy League economists do not know what to do other than kick the can down the road another few months, while hoping for a miraculous economic recovery. Fast forward to today, and the recovery has not materialized. Fed officials, current and former, are singing a different tune about ever restoring the balance sheet to pre-2008 levels." ~ Tyler Durden (editor of Zero Hedge, consistent with the Jackass, who expected ZIRP & QE to be permanent, once installed)

"James Rickards is a banker cabal tool, an enemy of Gold for 20 years, and a financial mass murderer. He belongs in prison, not writing propaganda books and granting deceptive interviews. His arrogance is stilfing and bothersom. His work should be completely ignored concerning Gold and any potential global scale solutions which supplant the USDollar. He has no place in offering financial forecasts for a RESET and restructure, since he will remain fully compromised to the Basel Kingdom." ~ Jim Willie

"I think all sober minded people who really are involved in politics understand that the idea of a Russian threat to, for example, the Baltics is complete madness. Are we really about to fight NATO? How many people live in NATO? About 600 million, correct? There are 146 million in Russia. Yes, we are the biggest nuclear power. But do you really think that we are about to conquer the Baltics using nuclear weapons? What is this madness? That is the first point, but by no means the main point. The main point is something completely different. We have a very rich political experience, which consists of our being deeply convinced that you cannot do anything against the will of the people. Nothing against the will of the people can be done. Some of our partners do not appear to understand this. When they remember Crimea, they try not to notice that the will of the people living in Crimea (where 70 percent of them are ethnic Russians and the rest speak Russian as if it is their native language), was to join Russia. Those in the West simply try not to see this. In one place, Kosovo, the West invoked the will of the people, but not in Crimea. This is all a political game. So, to give reassurances, I can say that Russia has plans to pursue an absolutely peaceful foreign policy directed toward cooperation. As far as expanding our zone of influence is concerned, it took me nine hours to fly to Vladivostok from Moscow. This is about the same time from Moscow to New York, through all of Eastern and Western Europe and the Atlantic Ocean. Do you think we need to expand something?" ~ Russian President Vladimir Putin (describing the stupidity of Western press propaganda)

"The Western globalist bastards say 'NEVER LET A GOOD CRISIS GO TO WASTE' (in wresting power as devious fascists). The Kremlin gardeners say 'NEVER USE YOUR BEST CARDS IN PUBLIC' (in reshaping the geopolitical chessboard toward a more constructive world, like with wrested Snowden file data)." ~ Jim Willie (think gardeners as in clean-up crew)

"For them [the liberal elites] migration is a fast road to destroying the Christian and nation-based Europe, to change the European Union’s ethnic basis. They know the Muslims will never vote for parties with Christian roots. So with huge number of Muslim masses they can push traditional conservative parties from the power forever. But the war is a huge opportunity for the nations with Christian roots, too. Our great opportunity is to solve the migrant discussions outside of the system of political correctness. Our promising strategy is with the V4, and maybe soon with Austria, to force them to take this decision out of the hands of the elites and place it in the people’s hands with referendums. The European Elite endlessly discuss how they can provide better and more devoted care to all the poor people pouring in here. Our enemies are not liberals, but nihilists, indulging in self-deception. The policies dictated by the European Union will result in a civilizational catastrophe." ~ Viktor Orban (defiant President of Hungary)

"Chinese scholars have repeatedly asserted that their development efforts will prove more successful than American efforts have over the past decade, because China’s relationship with Pakistan is based on development while the US/Pakistan relationship is based on security. They also suggest the scale of China’s investments make them more likely to have the needed transformative effect on Pakistan’s Economy, in contrast to the roughly $5 billion in civilian assistance provided by the United States through the Kerry-Lugar-Berman Act." ~ unknown political economic analyst

"The speech by Chinese President Xi at the G-20 in Hangzhou contains all the seeds of the future policies of China. It is very informative. China is way out in front of the Global Currency RESET. Conversely, the United States is running on fumes, certain to be wrecked economically. When the first payday is missed, all the Joe Sixpacks looking for paychecks and all the NeoCon apparatchiks on the take will not have their vig and will jump ship. Game over. It is more important to focus on getting rid of the NeoCons rather than trying to fix anything right now. When they go, their contraption breaks. Later on comes the opportunity for solutions. Right now we are being duped into struggling with them and their contraption. A bit more time is needed to foster common sense and for sound economic solutions to become more broadly apparent before a RESET event takes the stage. We may need a breakdown for it to move into place and to present the urgency. Sheeple are dullards. Deep down the NeoCons are suicidal and have no other playbook. They cannot tolerate any sharing of power.They must be eliminated from power before they act as irresponsibly as they say they will, like with account confiscations, broad censorship, martial law, and wider war. China is on track to the future. The US standard of living is on track to a big fall and decades to make a recovery." ~ Sky Crane

"The new legal bill allowing the Saudis to be targeted in US-based lawsuits is ill-advised, very wrongfooted, and almost funny. The victims of the 9/11 attack can sue the Saudis, with full cooperation by the USGovt. It will cause the Saudis to join Russia in revealing the true perpetrators of the heinous event, more motivated blowback. The true parties who organized and carried out the complex criminal event which changed the course of history were the Bush Crime Family, the MI-6 British security agency, and the Israeli security agency Mossad. The event was the biggest bank heist in history, which buried the USArmy Accounting Office report directed against Israel for $2.3 trillion in weapons thefts over the course of 20 years." ~ Jackass

"We believe we are in the midst of the market correction we have been expecting. It will likely persist over the next 3 to 4 months and be the largest correction since the 2008 crisis. [It will be a] healthy adjustment from over-valued market levels, which are primarily a result of exceptionally easy monetary policies." ~ Robert Citrone (founder of Discovery Capital Mgmt, with $12.4 bn in assets, its head known as a Tiger Cub, since he came from Tiger Mgmt Corp founded by Julian Robertson)

"Business activity slows greatly every year on 9/11. The people commemorate the event. A small minority do so with disgust for the mass murder committed by the Insiders within the USGovt and its security agency allies. The majority still believe the official story, but they are awakening. Regardless, the event serves to slow the economic activity. My business, a novelty shop with numerous other product lines, suffers a 30% to 40% reduction at the store every time the anniversary occurs. The Elites accomplish their goal with greatly slowed business as a second benefit toward their evil plans to wreck our nation." ~ MarjorieF (Hat Trick Letter subscriber in Virginia)

"The US political system was once the envy of many nations. Over the last two decades, however, it has become our greatest liability. Americans no longer trust their political leaders, and political polarization has increased dramatically. Americans are increasingly frustrated with the US political system. Independents now account for 42% of Americans, a greater percentage than that of either major party. The political system is no longer delivering good results for the average American. Numerous indicators point to failure to compromise and deliver practical solutions to the nation’s problems. Political polarization has especially made it harder to build consensus on sensible economic policies that address key US weaknesses. It is at the root of our inability to progress on the consensus [initiatives]." ~ unknown

"The cover story is that Duterte has called for the withdrawal of US troops in Mindanao, supposedly to keep them from being killed by the terror group Abu Sayyaf. [It] is a black ops terrorist organization financed by the Boys [at Langley]. The real reason the special ops troops are there is to watch over the giant gold stash. The cabal is intent on removing it very soon for their own purposes. Duterte knows this, and has already made a tentative deal with both China and Russia to allow them to access the location. This is in exchange for a piece of the action as well as protection from the US wet [assassin] works team. There is a very large amount of Gold stored there, dating from before the Japanese Golden Lily operation." ~ Ben Fulford (on why the Philippine nation is important)

"The Bank For International Settlements (BIS) in Basel Switzerland stole gold with deep collusion by nazis in World War II. They pilfered gold from numerous central banks in Eastern Europe like in Poland and Czechoslavakia. No reparations were ever made or attempted. Now the BIS dominates over the central banker world, issues rules from from banker royalty, and makes certain the corrupt gold market does not enter failure. For the BIS to sit at the top of the financial system like as royalty is the epitome of corruption, depravity, and injustice. They are banker nazis, elite parasites, and a financial criminal organization. For no criticism of the BIS to come from financial centers across the world, means the corruption is endemic and seemingly permanent. The new global Gold Standard will not overturn the BIS and discharge them from their perch. It will only force adjustments to the global power structure." ~ colleague of The Voice

## GOLDEN POTPOURRI

◄$$$ THE DEUTSCHE BANK BAILOUT IS READY... NOTHING IS FIXED EFFECTIVELY, ALL IS PATCHED POORLY... VIOLATIONS OF FSR RULES SETS A NEW PRECEDENT THAT ITALY WILL CHOOSE TO FOLLOW... PRESSURE MOUNTS TOWARD A SYSTEMIC BREAKDOWN, AS A SYSTEMICALLY IMPORTANT BANK HAS FAILED... THE CHAIN OF COMMAND FOR THE FINANCIAL RULING BODIES OF THE EUROPEAN UNION IS DISSOLVING... THE BREAKDOWN RUNS PARALLEL TO THE POLITICAL UNION, WITH EXITS PURSUED AND SOUGHT AFTER. $$$

Deutsche Bank is special. It is Germany’s only G-SIB (Global Systemically Important Bank). It is Germany’s financial flag carrier and symbol of the its long held desire to see Frankfurt eclipse London as the European financial center. But D-Bank got in bed with the Wall Street devious architects and criminals. Although Germany also has Allianz as a systemically important insurance firm, Germany requires the giant bank to function if it to remain a globally significant financial nation, a member of the elite global finance. Curiously, France has three G-SIB banks. Some believe without D-Bank on the field, the balance between France and Germany within Europe would shift. However, the German banks collectively own over 90% of French Govt debt, a fact to keep in mind. Furthermore, Germany has a large array of banks.

Sorting out the dead parts from their portfolios and balance sheets could soon become an impossible task. No wondrous efficiency would be possible, since the assets are too complicated, and when derivatives are dissolved, they would bring down a dozen other big banks. They are all linked together, lashed together. The rules of solvency would not apply, since the systemic failure would be at risk. Public till support would not be viable, since no nation commands $20 trillion for the patchwork and bailouts. Multiples of that amount would be required. Instead, the dead parts will inflict losses first on share holders and then on bond holders in the usual order of unsecured first. Any remaining spare parts of value with the potential to be cut away only to function later in a different body, would be sold off by means of sale or merger.

The custom is that public bailouts are supposed to be strictly temporary. No holding 80% of RBS for most of a decade is permitted, like the UKGovt has done, like the USGovt did with Citibank. Such are in clear violation, but again the system viability depends upon breaking the rules. Some coordinated effort must come with other large German banks. For the country to go against the rules, and to forge an unconventional path during the global financial crisis (which seeks no remedy), then the alternatives are nasty ugly. Extreme measures to recapitalize amidst accounting gimmicks, even deceptive capital raises, would leave the giant D-Bank a bloated and useless zombie. Other alternatives are likely to be pursued, and thus to bring in their train even greater political upheavals. The German nation will obviously insist on remaining in the forefront of globally significant nations, since an economic dynamo. Therefore, they are extremely likely to bend the rules, to make theirs another exceptional nation, as they opt to bail out the venerable flagship Deutsche Bank. It becomes a matter of national pride if not of survival.

Expect that Germany will set a course to ignore the FSB rules & regulations. Expect Germany to bail out D-Bank, bringing it into government ownership and protection. The Financial Stability Board has been legally linked with the EU governing body rules, which means bailouts force account bail-in confiscations. The upcoming desperate actions taken to save D-Bank will demolish the entirety of European policy regarding bailouts, government debts, and spending austerity. Remember well the endless uber-lectures on German insistence for fiscal discipline which was forced upon Greece, Ireland, Portugal, Spain, and Italy. What comes next is inconsistency, exceptionalism, and execution of double standards which will evoke cries of financial tyranny. The Bundesbank, German Govt finance ministry, and the Euro Central Bank will soon find their authority having vanished, their integrity shot to pieces. Every country would have a green light to do the same for their flag carrier banks. The next nation to execute the double standard (new exceptional standard) would be Italy. In fact, it seems that Italy is already thumbing its nose in disobedience to the EU rule makers. They consider their Monte dei Paschi and UniCredit to be sacred pillars also.

The loser in this sequence of events is to be the European Union experiment, bringing it to an end. The chain of command would be violated, the rules meaning nothing. The Jackass compares the situation to the captains in a prison camp being caught in taking more than their fair share of food rations during a war situation. Watch the European system attempt to justify their own exceptionalism, or else to try to continue without Germany. Maybe the Central European nation will embark on a separate course, which will enable a quicker adoption of a Golden DMark. The system is breaking down in key respects. Next comes the attempt to repudiate debts to Germany, with calls from the Southern Wild where PIGS roam to bail out all the sovereign debt with EuroCB funny money. If Japan and the United States can print unlimited funny money, the Japanese by open admission, the Americans by hidden actions and constant bold lies, then the Southern European nations can make the argument for exceptional treatment as well. Chaos reigns within the debtor prison asylum.

Deutsche Bank faces a nightmare, of which the insolvency is but one part. The D-Bank stock has lost 90% of its value. Only RBS has lost more in Britain. D-Bank has 7000 legal cases standing against it in the court dockets. The Arab human garbage influx project is ravaging the social fabric, even the political fabric. Chancellor Merkel has no political base anymore, just EU Commission support. The BREXIT vote rocked the continent, inducing several nations to seek exit from the fascist EU and freedom from its unelected fascist commissars. In France, Marine Le Pen would like to push France to embark on an independent and more proud path. See Golem XIV (HERE).

Keep in mind always. Since the Lehman failure, nothing has been fixed financially at all. No remedy has been pursued. The multiple liquidity facilities and ample patch jobs have solved absolutely nothing, precisely as the Jackass has been saying for ten years. There is more debt, more leverage, more liquidity, more patchwork, more lies, more redeemed toxic bonds, more planned (value-free) special bonds, more speaker fees to ex-central bankers, more narcotics money floating in the big banks, more arrogance, more criminality, and more hidden derivative allocations (like $10 trillion or more each month in my estimation). All these extraordinary measures have achieved less and less, but kept the power structure in place. All these measures have brought down the Money Velocity, killed business capital, and assured a constant powerful economic recession. Interest rates are pushed negative, while banks threaten to bail in accounts, and important sectors like insurance and pensions are teetering. The governments are quietly preparing their armed forces for martial law.

Track certain areas of development. A few very important consequences are unfolding. 1) Greece feels betrayed, all bailed out, most private accounts bailed in confiscated, the financial assets ravaged and ransacked. 2) Italy wants to follow the German path, without private accounts bailed in, deploying massive bailouts. 3) European Union financial rules & regulations are suddenly meaningless, with precedent set, as the chain of command is dissolving. 4) Special treatment comes, to be given to Deutsche Bank since it is the exceptional bank. It is not just a systemically important bank. It is the Wall Street outpost and crucial conduit for derivatives trading outside the regulatory purview. These derivatives have held the Western financial system together, to be sure in a fake illicit illusory corrupt manner, since the 1990 decade. The key event was Bankers Trust being forced into acquisition by D-Bank in 1998. The Germans did not want the acquisition and nightmare. This is why.

◄$$$ THE PETRO-DOLLAR COFFIN NAILS HAVE BEEN SPOTTED... PAY HEED TO THE BUTTERFLY EFFECT OF PUTIN-SALMAN OIL DEAL STRUCK IN HANGZHOU... RUSSIA HAS OUTMANEUVERED THE UNITED STATES ON MIDDLE EASTERN CHESSBOARD... THE PLAN TO WRECK RUSSIA WITH LOWER OIL PRICE HAS INSTEAD SLAMMED THE USECONOMY AND BIG US-BANKS... THE RESET IS BEING CONFIRMED, ALONG WITH THE BONFIRE OF THE USDOLLAR... A STRONGER OIL PRICE CAN COME WITH A WEAKER USDOLLAR, OR ITS VANISHING ACT... RUSSIA NEEDS A STABLE OIL PRICE, HENCE THE MOTIVE. $$$

The Russia-Saudi bonding in Hangzhou at the G-20 Meeting seems a tactical congruence to maintain the crude oil price at stable levels. Their energy alliance holds implications for Western Economic recovery which is critically linked to oil prices. In strategic terms, Washington’s attempt to isolate Moscow is rendered ineffective because of Europe’s heavy dependence on Russia for energy supplies. Clearly, Russia has outmaneuvered the US on Middle Eastern chessboard. The great backfire on the US-based shale producers has dealt another nearly fatal blow on the big US banks, already reeling and insolvent. Suffice it to say, the OPEC meeting in Algiers on September 26th will be taking place under dramatically different circumstances.

An understanding between Russia and OPEC holds the potential to completely transform the geopolitical alignments in the Middle East. First and foremost, Russia aspires to replace the US from its 70-year old pivotal status as Saudi Arabia’s number one partner in energy. This shift assured a powerful Petro-Dollar recycling effect, which has been historically a robust pillar of the Western financial system. It is enduring its final phase, as in phase-out. The tornado triggered by the butterfly wings in Hangzhou will not be confined to the Middle East. It promises to be a historic challenge to the capacity for the United States to maintain influence on a global scale. The broadbased war crimes have deeply undermined the US integrity as a global leader, together with ISIS deep involvement. A stable oil price is extremely critical, with numerous angles, effect, consequences, and goals.

1)Both Saudi Arabia and Russia can better plan their economies if they can estimate their revenues (price and volume).

2)The US game plan to destroy Russia with a lower oil price while using Saudi oil collapses.

3)Since the USFed cannot cause economic volatility with interest rates, the cabal has used oil prices to undermine Emerging Markets markets, a plan which falls apart.

4)Stable oil prices help to foster growth in the two biggest EM markets, namely China and India.

5)By keeping the price stable between $40 and $50, the US frackers all go bust and die off, while the US majors struggle to survive.

6)The only way oil rises in USD terms is when the USFed turns dovish in their Open Mouth Committee, which weakens the USD weakens, giving an excuse to the Saudis to dump their USTBonds.

Beware that the Western banker cabal is on the verge of running out of physical gold. The King Dollar is a paper tiger with some dull claws remaining. The Saudis have seen the writing on the wall. All USGovt foreign policy initiatives are utter failures, with powerful backlash. Of like kind, the Saudi Royal Family has a string of utter failures themselves. Note the several failed attempts by the cabal to bring down China and Russia, the failed effort in Syria, the failed effort to bring down Venezuela and Brazil, and lastly the coup in Turkey. See Asia Times (HERE). Thanks to EuroRaj for the above conclusions.

Chinese experts doubt the efficiency of any implemented agreement between Russia and Saudi Arabia aimed at stabilization of energy commodities prices. Many countries produce oil & gas with heavy reliance upon exports. They are unlikely to agree to the terms of the agreement. See TASS (HERE). Oil bankruptcies leave lenders with a horrendous recovery rate. US oil firm bankruptcies have been a true catastrophe for lenders. This wreckage was all forecast more than a year ago. See Bloomberg (HERE).

◄$$$ TURKEY IS ON THE VERGE OF EXITING NATO... TURKISH LEADERS PERCEIVE NO REASON TO REMAIN IN THE NATO ALLIANCE... THE ANKARA LEADERS WANT BOTH CLERIC GULEN AND MILITARY LEADER UGURLU RETURNED, EACH ENJOYING ASYLUM IN THE UNITED STATES... RUSSIA STANDS READY TO SHARE THEIR STRATEGICALLY LOCATED MILITARY BASES... OTHER NATO DEFECTIONS COULD SOON FOLLOW. $$$

Turkey on the way out, prepared to exit NATO, the North Atlantic Treaty Org. The foolish Secretary State John Kerry is actually threatening to boot Turkey from NATO, when the entire Turkish high brass lean strongly toward the exit. The relationship between Turkey and the West has recently deteriorated beyond reparable, following the US-led coup attempt which failed. Deep resentment ensued. The nation sees no defense of its security or sovereignty. The latest example of deteriorating relations is the row over Turkish Vice Admiral Mustafa Zeki Ugurlu. He served as assistant chief of staff in the NATO Allied Command Transformation in Norfolk. Turkey issued an arrest warrant for Ugurlu on charges that he is affiliated with the Gulenist movement. Refer to the cleric Fethullah Gulen, blamed as inspiration if not leader of the coup attempt. Ugurlu has been given asylum in the United States, his whereabouts unknown. The Turkish Govt claims Ugurlu has vital information on Gulenist subversive activities in Turkey. Many Turkish media outlets believe that NATO was aware of the plot, and was a key participant. Many Turks consider the US refusal to extradite Gulen as evidence of complicity in a Gulenist insurrection plot. Fethullah Gulen is an Islamic cleric blamed by the Turkish Govt for masterminding the abortive coup. Turkey has requested the United States to deport him but with no satisfaction. Turkish President Erdogan actually gave the United States an ultimatum, demanding the extradition. The US is being exposed as a terrorist sponsor and rogue nation.

US Secretary State John Kerry warned that exploiting the coup to crack down on its detractors and undermine its democracy could cost Turkey its NATO membership. He is pushing Turkey out the NATO doorway. With half a brain, Kerry should be enticing the Turks to remain in the alliance. To be sure, the alliance has turned militaristic, bellicose, and nothing related to security. However, if Turkey departs NATO, it will fracture, the key corner nation being a splinter. Just like with the British Exit from the European Union, after one nation chose to depart, other nations join the movement. The NATO alliance had been expanding into Eastern Europe. It has over-stretched at a time when it risks losing a key member, Turkey. It is strategically located on the Russian border. It is essential in the heroin traffic conducted by the USMilitary and CIA, via Afghan and Kosovo points. The key NATO facility in Kurecik (eastern Turkey) features advanced radar systems, deployed under its ballistic missile defense program. They do not serve Turkish interests, and furthermore, might be abandoned since they threaten the new friend Russia.

If Kerry’s remarks are meant to sound a warning, they are falling on deaf ears in capital Ankara. The campaign against Turkey’s NATO membership is gaining tremendous momentum. It will be a calamitous blow to the alliance. Turkey will turn to Russia. It will transform into a Russian shared base alliance, and even purchase weapon systems from Russia, maybe China too. The Jackass suspects (hear me out), that Kerry is working with Putin of Russia toward eliminating the NeoCon element in Washington. The USGovt is deeply divided in every major office, the fascists versus those favoring the US Republic. Cleaning house requires peace treaties with Russia like in the Syrian War and subduing NATO's belligerence toward Russia. It is possible that Kerry is secretly working to push Turkey out of NATO, with Putin's blessing. Several nations were promised EU trade benefits upon NATO membership, but with the EU Economy in chaos, those new members feel cheated. To be sure, NATO is weakening and might soon have fewer teeth.

A little known fact. Turkey has a larger military and higher defense spending than any one of its neighbors or any NATO allies, with the exception of the United States. Its capabilities might increase, since the country will be under no pressure to sign deals with non-NATO states to enhance them. For instance, NATO made Turkey reject a lucrative deal with China to enhance air defense. That deal will soon be back on the table. See Strategic Culture (HERE).

◄$$$ BARNHARDT EXPOUNDS ON THE UPCOMING SYSTEMIC LEHMAN EVENT... THE WALL STREET BUST IN 2008 WILL BE REPEATED FOR THE ENTIRE WESTERN BANKING SYSTEM... THE FUSES ARE LITTERED ALL OVER THE GLOBAL GROUNDS, NEXT TO LIT CIGARS ACTIVELY SMOKED BY FAT CATS... THE BREAKDOWN INCLUDES EVERY CONCEIVABLE FINANCIAL PLATFORM... THE WESTERN BANKING SYSTEM STANDS AT EXTREME RISK... EXPECT THE GLOBAL SUPPLY CHAIN TO BE AFFECTED. $$$

The upcoming global financial collapse is going to make 2008 look like a cake walk. The Jackass for the last several months has called it the Systemic Lehman Event. Numerous important components are fracturing simultaneously, led by the Deutsche Bank bust and inevitable dissolution. The USTreasury Bond complex is held together by computer generated demand. The Western banking system is deeply insolvent, dragged down by Italy. The sovereign debt situation cannot be resolved. Even the insurance and pension sectors are hopelessly ruined. War is being used widely to defend against defections from the USDollar system, replete with war crimes against humanity. The United States deploys a limitless credit card to finance its welfare state and war machine. Finally the trade picture is botched horribly by shipping firm bankruptcies, where behind the scenes the USTBill is being refused in payment. The system is crashing, but this time, unlike in 2008, the entire financial structures are breaking. Refer to trade payment, banking systems, sovereign bonds, and currency. After the Lehman failure, all financial platforms were more tightly tied together, with no remedy planned or pursued, just defense of the political power base and USD monetary control room. All components are breaking at once, during which the confidence and respect for the USD system is almost completely gone. See YouTube (HERE) featuring Ann Barnhardt.

## CREEPING FASCISM & EXPOSED GENOCIDE

◄$$$ GERMANY HAS BROADBASED PROTESTS AGAINST THE TRANS-ATLANTIC TRADE & INVESTMENT PARTNERSHIP... A MASSIVE 300,000 JOINED PROTESTS ACROSS CITIES OF GERMANY AGAINST US-EU CORPORATE TRADE DEALS... POPULAR AWARENESS GROWS BY THE MONTH ABOUT THEIR WICKED PLANS TOWARD INSTALLING THE FASCIST STATE... EXPECT THE SAME TYPE OF PUSH AS THE RUSSIAN SANCTIONS, HARDER TO REMOVE THAN TO PUT IN PLACE. $$$

Hundreds of thousands took to city streets across Germany on September 17th. They marched against the corporate sponsored trade deals which they claim will undermine democracy, attack workers, and diminish entire economies. The fascist trade unions are designed to accelerate the threats posed by corporate hegemony and global warming, extending wide grabs for asset ownership and intellectual property. The Trans-Atlantic Trade & Investment Partnership (TTIP) and the Comprehensive Economic & Trade Agreement (CETA) are European Union deals with the United States and Canada respectively. Each is fascist in nature. Their opponents take aim at the agreements, which are not really concerned with expanding trade but rather increasing corporate power. Jennifer Morgan is director of Greenpeace Intl. She stated, "CETA and TTIP threaten environmental and consumer protection for millions of people in Europe and North America. These agreements will weaken food safety laws, environmental legislation, banking regulations, and undermine the sovereign powers of nations." Exactly! They will do a lot more, if passed, such as install corporate power structures in ownership of assets. The trade unions are designed as centerpiece structures for the global fascist state.

With large rallies in Berlin, Hamburg, Cologne, Leipzig, Frankfurt, and other cities, the crowds were estimated at anywhere from 250,000 to 320,000 nationwide across Germany. The popular organization Common Dreams has reported that the TTIP negotiations failed badly last month. Despite their total lack of broad support, either with the public or the Parliaments, US President Barack Obama has vowed to see the deal approved. Also, despite widespread opposition within her country, German Chancellor Angela Merkel also remains supportive. The two leaders are puppets within the banker cabal, a vast powerful crime syndicate. People in the streets who spoke with the BBC offered some opinions. One said, "I want us to get rid of TTIP and for European social and environmental standards to be respected, maintained, and improved." Another said, "Many demonstrators think the deal would lead to exploitation of people by businesses on both sides of the Atlantic." A final person said, "It will be the enterprises and banks that will have power over people worldwide. That is a no-go. People need to know that and we will protest until there is no chance of that happening." The key is power and influence to remove the laws and legal structures put in place against the popular will. Such devices and paths are not yet clear. See Zero Hedge (HERE) and The Guardian (HERE) and BBC (HERE).

◄$$$ MOST VACCINES CONTAIN THE HERBICIDE GLYPHOSATE... THIS IS THE NEWEST REVELATION ABOUT THE TOXINS AND CONTAMINANTS PUT INTO VACCINES BY THE MAJOR BIG PHARMA FIRMS, ALL CRIMINAL ORGANIZATIONS... ALL THE POPULAR VACCINES AND ALL THE MAJOR PLAYERS ARE INVOLVED. $$$

Monsanto has a privately stated goal to kill half the global population, as a key component to the Agenda-21 initiative. Much of the people cannot grasp the enormity of the heinous plan, since too horrible. See the pernicious vicious horrendous YouTube (HERE). Past research has revealed the contaminants of mercury and formaldehyde widely present in modern vaccines. Big Pharma is trying to weaken or kill the public. Such is not a wild accusation or exaggeration. Numerous revelations have come in the last few years about the toxins in vaccines, including in the prestigious New England Journal of Medicine. Depth in accusations is offered by Anthony Samsel and the activist group Moms Across America.

Samsel reports that to guarantee accuracy, he used multiple samples of the same vaccines, multiple varieties of vaccines, and multiple laboratories. Vaccines tested include those for shingles, the measles-mumps-rubella group, the diptheria-tetanus-pertussis group, chicken pox, influenza, pneumonia, and hepatitis B. What he found was frightening. Zostavax, a shingles vaccine made by Merck, contains 0.42 ppb (parts per billion) of glyphosate, while the measles group vaccine MMR-II, for measles contains 2.90 ppb. A different sample of MMR-II was found to contain a much greater 3.740 ppb.

Not just Merck, but other pharmaceutical giants have contaminated vaccines as well.The Novartis flu vaccine Fluviran contained over 1.70 ppb, depending on the lab that did the testing. Sanofi Pasteur’s DPT vaccine contained 1.09 ppb glyphosate, while Glaxo Smith Kline’s Hepatitis B vaccine scored between 0.33 and 0.337 at two different labs. Only one vaccine, Merck’s Pneumovax-23, appeared to be free of glyphosate. The concentrations of poison need not be high to be extremely dangerous to health. A mere three parts per billion may not seem like a high concentration. But Samsel points out that there are trillions of molecules involved, amplifying the amounts, since a few cubic centimeters (cc) are involved in any dosage. Try quadrillions and more in reality. See the Samsel report on YouTube (HERE & HERE).

The murdered doctors were investigating the connection between autism and vaccines. They discovered much more, like cancer causing agents in the vaccines, along with certain substances known to debilitate the human immune system. The only factor in common with all the murders, at least ten people killed, was a visit by the FBI hours before their disappearance. They were all supporting specific publications in medical journals. A few were scheduled to be speakers at medical conferences. The Big Pharma firms are responsible for laced vaccines and promoting cancer. They probably hired the FBI to murder the doctors. Never forget! More importantly, never take vaccines. They are designed to weaken, to kill, and to spread the actual virus. The motive for taking them is fear, surely fanned by the USGovt officials. They are designed to assure future revenue for Big Pharma, which is an important hidden player in the banker cabal and massive crime syndicate. See Natural News (HERE). The Jackass reported on this story in September 2015.

◄$$$ THE FASCIST BUSINESS MODEL INCORPORATES ALL THE WORSE ELEMENTS OF KEYNESIAN ECONOMICS, A BROKEN SCHOOL OF THOUGHT... THE MODEL ALSO INTEGRATES A VAST SYSTEM OF ECONOMIC HERESY, PUT FORTH AS PUBLIC ADDRESS DOGMA AND THE LEADING HIGH PRIESTS... ALL THEIR MESSAGES ARE WRONG... THEY ARE INSTEAD ALIGNED TOWARD SUPPORT OF THE POWER STRUCTURE, WHERE BIG BANKS CONDUCT SELF-DEALING AND PRINT MONEY FOR THEMSELVES. $$$

Consider many of the Fascist Business Model messages, laced within the endless din of propaganda. Their messages are all false, in support of the existing power structure in place. The Jackass privately calls it Reich Economics, a truly broken appendix to the demonstrably broken Keynesian chapters of heretical economics. The West has followed the methods of John Maynard Keynes, who also held disdain for the Gold Standard. In doing so, the West has destroyed the financial platforms, eroded the capital formation devices, polluted the business arenas, and put the entire USEconomy at risk of systemic failure. The only success of the model is preservation of power, which soon will come to an end.

Consider the many primary tenets of the failed obtrusive Reich Economics, the phony standards of destructive economic and financial financial practices. They are all embedded in heresy. The public and financial professionals are coerced to accept the heresies as dogma, passed on by the high priests at the USFed and Wall Street banks. They are all embedded in economic heresy. They are all highly destructive, yet widely accepted as valid and firmly in place. The biggest failure and wrecking ball is QE, which serves as darling of financial markets.

Quantitative Easing, the USFed initiative of bond purchases, is considered stimulus. It is not. Instead, it undermines the entire sovereign bond market. It encourages legitimate investors to dump USTreasury Bonds to the USFed itself, while other legitimate investors refuse to buy USTBonds. The effect is to force hedging against the hyper monetary inflation, to raise the cost structure, and to eliminate the profit margins. Entire businesses and business segments shut down, retire their capital, and slash jobs. QE saves the big banks by providing liquidity to insolvent financial structures. At the same time, by saving the Too Big To Fail banks, QE destroys the integrity of the entire USEconomy, if not the entire Western Economy.

Zero Interest Rate Policy is considered as a kickstart to the USEconomy, another stimulus. It is not. Instead, it distorts the price of money, distorts the financial market, and results in tremendous misallocation of capital. It also encourages a vast casino, whereby investors try to profit from anticipating the USFed itself. The nation has thus lost its way, unable or unwilling to pursue the correct fruitful path of capital formation, business creation, product development, job hiring, and profit generation. Worse, the entire industries of insurance and pensions are systematically destroyed, from the ultra-low interest rate. They cannot sustain their business models without the proper income from their books of business. Lastly, the ultra-low rate does not reward savers. Little known, the volume of consumer loans is much less than the volume of certificates of deposit at banks. Therefore, low rates slow the USEconomy, not stimulate it.

The jobless rate is reported to be low. It is not. The actual figure for the Jobless Rate is taken directly from the state unemployment insurance rolls. When the Obama Admin two years ago stopped the 99-week extensions for recipients, the result was an immediate reduction in the jobless rate. Millions of people fell off the rolls, and were no longer considered unemployed. The Labor Participation Rate is the more accurate measure to follow. It is falling tragically, and supports the premise that the Jobless Rate is well over 20%.

The USEconomy is always reported to be in a sluggish recovery. It is not. By all accounts, it appears illegal for economists to claim a recession is in progress. They lose their jobs. The same goes for financial reports in the press and television broadcasts. They lose their jobs. Guests who mention recession are cut off. The reality is horribly painful. The USEconomy has been stuck in a vicious recession since 2007, of magnitude minus 4% to minus 6% every year on the Gross Domestic Product. The fiscal policy and monetary policy both contribute to the deterioration.

War spending is considered to lift the USEconomy with trickle down benefits. It is not. In fact, war spending is probably an order of magnitude more destructive than simple welfare payouts. The trickle down effect is destructive at every step. In a health environment, capital formation and development of products and services promotes a positive trickle down effect with streams of suppliers and efficiencies integrated. In war spending, explosions and killing are the name of the game. The trickle down is of destruction, ruin, and misery. The argument on reconstruction that follows the wartime activity is laughable. To be sure, some reconstruction takes place, but not sufficient in volume. Besides, the funds set aside for rebuilding are usually stolen by the Elites (see Kissinger, Clinton Foundation) while the Senators enjoy kickbacks.

The Too Big To Fail banks are considered essential to preserve. They are not. They are universally financial crime centers and criminal organizations. They are preserved at the expense of the USEconomy. The big US banks are in control of the USGovt, thus kept in positions of power. While the big US banks are kept in operation, the cost is heavy, since the USEconomy is permitted to degrade, deteriorate, and decay. The mantra should be that we save the big banks but killed the economy.

Federal deficit spending is considered to sustain long-term economic growth, and to avert recessionary spirals. It does not. Deficit spending is an accumulating disaster. In bad times, the deficits are enormous. In good times, the deficits remain sizeable. Over the long stretch of time, the deficits have made $20 trillion in unpayable debts which will never be repaid. The portion of foreign held USGovt debt went above the 50% level several years ago. Since the Lehman failure, foreign creditors have been secretly calling the shots, making many hidden decisions. The other hidden effect of the staggering federal debt is pressure to maintain the prevailing interest rate near zero. A normal rate of 5% would mean $1 trillion in annual borrowing cost alone. No discipline whatsoever exists in managing the deficits. Systemic breakdown and federal debt default are the result. The breakdown is well along.

The sanctions imposed against Russia and Iran are reported as removing bad elements from integrated involvement in the Western Economy. It does not. The sanctions are designed to prevent the removal and abandonment of the USDollar as global currency reserve and global trade payment standard. The sanctions are motivated to sustain the King Dollar Court and to retain its global usage, which permits continued $trillion thefts by the banker cabal. To attempt a cutoff of Russia and Iran, two former historical empires, is both ambitious and impossible. They will both be integrated with the European Economy, as gas suppliers. The upshot will be more blowback against the United States, for its exception power plays and engrained corruption.

The central bank franchise system is considered as promoting economic growth, assuring financial stability, and encouraging employment. It does not. The system endorsed fake money, a debt based complex extravaganza of corrupt money. The system enables monetary creation by the bankers, ruin of the system by their invalid structure of money, then confiscation of assets by the creators of fake money. The central bank system sustains the banker power, which since 2001 has grabbed both the White House and the USCongress with its tentacles. The consequence of their century of rule with central bank pillbox controls has been Western Economic destruction and widespread big bank insolvency. Their continued plans are being interrupted.

The War on Terrorism is reported to keep America safe. It does not. The architects are the primary perpetrators of terrorism. They employ hidden tools with numerous mercenary groups, or simply hire the Mossad like in Paris, Brussels, and Nice. The fake war is to provide adequate smokescreen for rampant narcotics production, distribution, and integration within banking operations.

Expansion of the USDollar money supply is considered to lift the USEconomy and to enable its development. It does not. The bitter fruits of the Fascist Business Model cannot be seen more clearly in the fast falling Money Velocity graph. It is down almost 50% since QE was installed. The USD money supply has risen easily by double, yet the USEconomy is in tatters. In a most perverse manner, the new USDollars generated are a type of anti-matter in a financial sense. The pure unadulterated inflation is acid and destructive of capital and wealth engines.

## JAPANESE MONETARY INSANITY

◄$$$ THE ASIAN POWERHOUSE (JAPAN) COMPLEMENTS GERMANY WELL. THEIR EXPORTS FELL BY 9.6% ON THE YEAR THROUGH AUGUST... EXPORTS WERE UNIFORMLY DOWN TO CHINA, ASIA EX-CHINA, EUROPE, AND THE UNITED STATES... THE RISING YEN CURRENCY IS PART OF THE PROBLEM, ADDING TO EXPORT PRICES... THE BANK OF JAPAN IS TOTALLY OUT OF CONTROL, PURSUING A YIELD CURVE OBJECTIVE, WHILE EXPANDING THE MONETARY BASE TO DANGEROUSLY HIGH LEVELS... THE BOJ IS BEYOND RECKLESS. $$$

Japan's exports fell in August for a 11th consecutive month due to the Yen strength and sluggish overseas demand. The Ministry of Finance (MOF) data showed that exports fell 9.6% in the year to August, dragged down by shipments of cars and steel. The Japanese Economy is the third largest in the world. Reliance upon the Bank of Japan for relief is misplaced, the nonsense ringing around the world for solutions to come from the source of many problems, namely central banks. Exports face the headwind of a rising Yen currency, up from 84 to 98 since the year 2016 began. The vast array of export industries is expected to struggle in the near future. The Bank of Japan has gone almost totally out of control. Their QE to Infinity initiative, announced literally as such in September 2014 (they actually mentioned the word infinite) has amplified bond purchases, and included various risky types of assets. The response has been a 16% rise in the Yen in just eight months from hotmoney playing their stock market. Hence, an export smackdown from the financial abuse, an unintended consequence again.

The MOF data showed exports to China fell 8.9% in the year to August, marking the sixth straight month of annual declines. The mainland remains Japan's largest trading partner, as China has acted like a low cost outsource for industry since year 2001, taking in huge volumes of industrial equipment. Shipments to Asia, which accounts for more than half of Japanese exports, fell 9.4%, led by steel shipments bound for South Korea. It was the 12th straight month of declines. US-bound exports fell 14.5%, largely due to car shipments, while exports to the European Union fell by 0.7 percent. Imports fell 17.3% in the year to August, from a slower economy generally. The trade balance swung to a deficit of 18.7 billion Yen (=US$184 million), versus the median estimate for a JPY 202.3 billion surplus by clown economists, who are intellectually corrupt and often plainly incompetent for not factoring in a higher Yen exchange rate (basic stuff). It was the first trade deficit in three months. See Reuters (HERE).

The current risk is for the JapYen to continue with a breakout above the 100 parity level. A Cup & Handle pattern is clear. Tremendous effort will come to restrain the currency rise further, since the entire Japanese export trade lies at risk. The story on Japan runs parallel to that of Germany. It is the other slave state besides Germany, run by the corrupt USGovt managers, killers, and thieves. Washington runs both nations, since their defeat in WW2. One hundred references could be provided to support the claim, as both vassal nations face steady ruinous forces on the monetary and political sides. Nowhere is the central bank policy more screwed up and wrecked than in Japan. The nation followed Wall Street orders in 1991 with a zero percent policy, followed by QE and monetary excess. The Wall Street banksters wanted to begin the Yen Carry Trade, for borrowing free money and investing in the US markets. They generated $1 trillion profits with no work and almost no risk, except of course for global financial systemic destruction.

◄$$$ THE BANK OF JAPAN JUST ANNOUNCED THAT IT WILL MAINTAIN ITS BOND BUYING SPREE, OF VIRTUALLY UNLIMITED PURCHASES, AS THEY KEEP IN EYE ON THE BOND YIELD CURVE... THEIR ASSET PURCHASE PLAN IS TOTALLY SKEWED AND INSANE... THE CLEAR SIGN OF INSANITY IS THE NEGATIVE 25 BPT YIELD ON THE 2-YEAR BOND. $$$

It is always interesting to hear a central bank emphasis for monitor of problems. The JGBond yield curve is the wrong focus. The right focus is monetary growth and the harmful effect on the Yen currency rise. The BOJ is out of control, intervention gone amok, with no hint of success in 25 years since QE was first installed. It is hard to believe, but the QE lunacy began in 1991. The central bank has left rates unchanged. They are willing to give ground on grander monetary base growth in order to achieve a nutty yield curve objective, despite the export trade damage. They will continue with the risky asset purchases, like the JPY 2.7 trillion plan to buy exchange traded funds that track the TOPIX stock index. The insanity is seen vividly in the 2-year Jap Govt Bond yield, deeply negative. At least Japan admits buying stock indexes, unlike the lying USFed. See Zero Hedge (HERE). If the lunatics at the BOJ are not careful, they will encourage vast sums of money to exit the Japanese banking system, and chase Gold. The people can avoid the cost of a bank account, and instead enjoy the profit of a gold & silver asset.

◄$$$ DOUBT HAS COME INTERNATIONALLY ON HOW THE BANK OF JAPAN CAN MANAGE THE YIELD CURVE... DISTORTIONS ABOUND... BOJ IS HOPING TO STEEPEN THE YIELD CURVE AND UNDO THE DAMAGE IT ALONE CREATED SINCE JANUARY WHEN IT INTRODUCED NIRP FOR THE FIRST TIME... THEY ARE OUT OF CONTROL IN THEIR MONETARY MAD LABORATORY, HAVING DESTROYED THE INTERNAL FREE MARKET MECHANISMS IN BOTH THE BOND AND CURRENCY (FOREX) MARKET. $$$

Negative Interest Rate Policy (NIRP) is horribly destructive, more so than QE alone with its hyper monetary inflation at work. In a good explanation of how the Japanese sovereign bond market is badly distorted, BOJ expert Naohiko Baba stated, "It is very unclear at this time exactly how the BOJ intends to control the yield curve in the future. Based only on the official statement, we think it is likely it will maintain the yield curve at more or less the current level for the time being. However, the question is how it will control the overall level and shape of the curve when financial and economic conditions change in the future. While the JGB market needs to take time to study the BOJ’s intentions, with interest rate movements lessening, we think the pricing function of interest rates as a mirror reflecting real economic and financial conditions will be increasingly lost." Slight movement is a telltale sign of strong control of the bond market with intervention. There are no more free bond markets anywhere.

Zero Hedge puts it well, explaining that nationalizing the bond & stock markets renders them no longer a market at all. They become a policy tool which has ceased to deliver any informational value to analysts and observers. The venerable house of financial crime Goldman Sachs offered some good analysis on what the BOJ statement actually means, with their available policy tools. The Japanese central bank has begun a stealth taper, but with a change to the monetary target. They conclude the following, taken verbatim.

The BOJ emphasized that it has four means of easing at its disposal going forward: (1) the negative interest rate (short-term interest rate) on policy rate balances in current accounts, (2) 10-year JGB yields (long-term interest rate), (3) expansion of asset purchases, and (4) expansion of the monetary base. The BOJ will continue to apply a negative rate of 0.1% for option#1, while purchasing long-term Jap Govt Bonds so as to maintain long-term interest rates at around zero. We think the BOJ aims to control the yield curve by controlling these two interest rate targets, together with the introduction of new market operations as a backstop when interest rates rise. The BOJ decided to maintain the pace of JGB purchases at around JPY 80 trillion per year for the time being, but it has effectively abandoned its previous monetary base target.

Governor Kuroda of course has issued denied, liars that central banks always are, and perhaps must be. They cannot really admit destruction for everything they touch. The introduction of yield curve control could be considered as paving the way for future tapering of JGB purchases. The BOJ must coordinate with the USFed, since currency shifts come in direct consequence to the rate differentials of monetary creation. They have screwed up the bond market as much as the FOREX market. Thus has exposed the added risk to bond purchase reduction. Goldman Sachs concludes that the Bank of Japan needed to minimize market shock accompanying a shift in policy targets and also make the easing system longer lasting and more sustainable. They describe impossible tasks, best left to the market, but the market no longer exists within its mechanisms. See Zero Hedge (HERE). Notice the monumental challenge to manage and control the JGBond market and the Japanese Yen currency, since the QE was installed in 1991, an impossible task. Now the USFed faces the same monumental but impossible task to control the USTBond market and the USDollar currency.

## EUROPE CAUGHT IN CONVULSIONS

◄$$$ GERMAN BANKS FACE $100 BILLION EXPOSURE TO SHIPPING, WHOSE INDUSTRY HAS IMPLODED... THE ONE TWO THREE PUNCH IS THE RECESSION, ENERGY LOSSES, AND NOW SHIPPING LOSSES... THE BANKS WILL BE EATING THE LOSSES, SINCE DISTRESSED SALES ARE NOT HAPPENING... NO SUCKER BUYERS. $$$

German lenders had been throwing money with near abandon at the sector when shipping business was brisk just a few years ago. In recent months the same banks have been stuck with massive exposure to toxic debt. In the wake of worsening conditions in the shipping sector, many banks will be forced to write down losses on their investments. Many will sell down their impaired debt paper at a discount to distressed buyers. Others will write off some or all of their loans. A national movement is afoot to seek an official bailout, amidst controversy and biting debate. The shipping difficulties come at a time when European banks are already bogged down by an economy mired in recession, with huge energy sector losses. They furthermore face tough capital demands from regulators, under the Basel III Rules, which are eroding profitability.

The shipping finance sector is imploding. Estimates are for collective German bank risk to be in the $100 billion range. The sentiment is laid out and echoed by other firms such as Ardmore Shipping Corp and shipping finance specialist HSH Nordbank. The decline is awesome! Before the financial crisis, when a dry bulk ship or oil tanker could earn over $200,000 per day, German banks were among the most prominent financing players. Such vessels now command around $10,000 to $15,000 per day, which is over 90% less on income stream. Word has it that Royal Bank of Scotland is trying to sell its entire Greek shipping business, valued around $3 billion, as well as up to $500 million of a separate portfolio of Turkish shipping loans. NordLB said in August it was selling a $1.5 billion portfolio of shipping loans to KKR Credit (within private equity firm KKR), and to a sovereign wealth fund. The banking sector expects at this time to eat their portfolio losses, since few buyers are interested in distressed sales. The reason is simple. The market is awash with impaired debt, and the fundamentals are horrible. See Maritime Executive (HERE).

Watch China step forward with low-ball offers, which will be accepted, but only after a few more weeks time pass, and more pain is felt, while more desperation sets in. China is busy buying up the Greek shipping port in Piraeus, upon which they would surely want to build a monopoly. China invests patient money.

◄$$$ GERMAN EXPORTS PLUNGE 10% OVERALL, AND DECLINE BY 14% TO NON-EU MEMBER COUNTRIES... THE CONSEQUENCE (OTHER SHOE TO DROP) COULD COME VERY QUICKLY IN THE BANKINGSECTOR... THE BIGGEST EUROPEAN ENGINE IS SPUTTERING IN AN EXPORT DECLINE... TIME WILL TELL IF A MAJOR TREND CHANGE IS UNDERWAY FOR THE POWERHOUSE GERMAN ECONOMY... THE GERMANS STILL SPORT A TRADE SURPLUS. $$$

The German Economy with its strong export emphasis shows signs of weakness, with actual declines. The Global Economy is a problem, compounded by the Russian sanctions. Although no outright financial collapse is evident, the extreme stresses are certain to build. The fallout will come with the banks, already reeling from the energy and shipping sectors. The data released by the German Statistical Agency serves as a menacing warning sign. On September 9th, the agency reported on a preliminary basis, exports in July plunged 10% to EUR 96.4 billion. The decline is measured in comparison to July last year (not seasonally adjusted). The imports dropped 6.5% over year, to EUR 76.9 billion. This slashed Germany’s trade surplus for July by 21% to EUR 19.5 billion. Exports to the 28-member European Union plunged 7.0% to EUR 56.3 billion. By contrast, imports from EU countries dropped 4.5% to EUR 51.3 billion. Despite the downward pressure, Germany remains an export powerhouse.

Next comes the slam news. Exports to what they call third countries, those outside the EU, particularly the United States, plummeted 13.8% to EUR 40.1 billion. Imports from those same third countries plummeted 10.1%. The US had become Germany’s largest trading partner in 2015, replacing France in that position. The trend has reversed in a very bad way. In 2015, every month booked year-over-year export increases from the dynamic Germany, which never forfeited their industry like the United States. So far in 2016, three months out of seven showed exports dropped on a year-over-year basis. They were January (-1.5%), March (-0.6%), and now July (-10.0%). This leaves exports for the first seven months of the year down 0.4%, compared to the same period a year ago.

The last time annual exports edged down was in 2013 (at -0.4%), due to the lingering effects of the EuroZone debt crisis centered on Greece. Before then, the last downturn was the infamous year 2009, the post-Lehman year. The German exports that year plunged 18.4% as global supply chains were freezing up during the onset of the global financial crisis that remains unresolved. More significantly, those were the only two years when exports declined since 1993. Any annual export declines are rare in this export driven economy, which should signal a black swan. Every time a Chancellor goes overseas, planeloads of German business tycoons join the entourage to arrange and sign mega-export deals. In the recent past, they have been high-speed trains to Russia or military helicopters to Saudi Arabia. Some export deals have been outsized military hardware to Indonesia, which included Leopard battle tanks, Marder infantry vehicles, and more. It is not clear whom the country is fighting against.

The July plunge in exports has rattled some nerves and raised many questions. Explanations are being hastily put together. One justified reasoning has that in July 2015, exports were very strong at EUR 107.1 billion, up 7.1% from the prior year. Thus a difficult comparison is made. The July figure here is not so bad, just that July last year was so good. It is the base effect. The argument does not carry much weight though. The July 2015 exports were not as strong as March 2015 exports, and exports in March 2016 had the same base effect or bigger to deal with as those in July. However, the March annual change was down only 0.6%, rather than plunging 10%. Here is the ugly data point on trend reversal. The July export volume at EUR 96.4 billion was 3.6% lower than exports in July 2014. It seems a trend change is underway, one which requires a few more months to conclude upon. Indications are of a sudden collapse in global demand for German goods. The early signs of an important German export downturn could be in progress. See Wolf Street (HERE).

◄$$$ EU COMMISSION WORKED CLOSELY WITH PORTUGAL ON A 5 BILLION EURO BAILOUT FOR CGD BANK... THE DEAL HAS MANY PIECES TO THE CAPITAL PATCHWORK. $$$

The Portuguese Govt will inject up to EUR 2.7 billion into Caixa Geral de Depositos (CGD) and convert EUR 900 million of investments into capital. At the same time, the bank itself has promised to raise capital from its subordinated debts. Capital worth almost EUR 1bn in bonds will be converted, received as state aid in 2012. The European Commission and Portugal report that they have agreed on a deal valued at EUR 5bn to recapitalize the state-owned CGD bank, including a EUR 2.7bn injection of state funds. Additionally, the Portuguese finance ministry said in a statement that it would transfer 500 million Euros worth of shares in the state-owned ParCaixa holding company to CGD directly.

The deal was provisionally approved by European Union competition chief Margrethe Vestager, as having met the 28-nation bloc's tough rules on preventing unfair government aid for businesses. The deal is to be on market value terms, and thus the passed hurdle. Regard the approval as a sham, since markets are overly influenced by the Euro Central Bank and its steroid activity. Portugal's banks have been under huge stress after the collapse of the country's major lender Banco Espirito Santo in 2014. All parties involved are pleased with the deal. The Jackass continues to regard such patchwork as temporary fixes that buy some time. See Tip News (HERE).

◄$$$ ITALIAN BANK UNICREDIT HAS WOES FELT ACROSS EUROPE... FINALLY MORE THAN MONTE DEI PASCHI IS GATHERING ATTENTION... UNICREDIT MUST CONDUCT ASSET SALES AND RAISE CAPITAL, IN COMPETITION WITH MONTE DEI PASCHI... THE ENVIRONMENT IS LOUSY FOR SUCH STEPS... ITALY FACES A REFERENDUM TO END THE RENZI REGIME SUDDENLY... CHAOS BUILDS IN ITALY. $$$

Monte dei Paschi is not alone in creating a nightmare for the European banking system. UniCredit SpA is Italy's largest lender by assets, based in Milan. It emerged as one of the weakest big banks in Europe in July's Stress Tests, dragged down by a huge pile of bad loans. Jean-Pierre Mustier is the bank's new chief executive. He faces a series of difficult choices. The bank must cut the bank's EUR 80 billion (=US$89.9 bn) in impaired loans, the largest of any European bank. They soon will be forced to raise billions of Euros in fresh capital. A sale of prized assets would hurt already meager profits. Usually good assets are sold to cover losses from bad assets, thus producing a much weaker resulting financial firm.

Meanwhile, the travails of Italy's #3 lender, Banca Monte dei Paschi di Siena SpA, promise to only complicate Mustier's job at UniCredit. Last week, Monte dei Paschi said that CEO Fabrizio Viola had agreed with the bank's board to resign. The bank had just hatched a plan to shed EUR 28 billion in bad loans. Troubles at UniCredit extend further beyond the Italian border. It has vast business in Germany and Eastern Europe, which could threaten the continent's already fragile financial stability. The British vote to exit the European Union has upended Europe's status quo, making the financial system more sensitive to shocks. Investors are watching UniCredit closely, as they expect its fate to affect both Italy and potentially other lenders on the continent. The shock waves are spreading far and wide, recognized in London at the financial core.

The responses by UniCredit have produced very little hope. Raised commissions, sold assets, cut costs, have produced little in results. The sprawling bank has suffered an 8% drop in net interest income, down to EUR 12 billion last year. Net profit last year was only EUR 1.7 billion. At the same time, the bank has had to write down EUR 24 billion in bad loans in the last three years. These problems have resulted in the UniCredit common equity Tier 1 ratio, an important measure of bank capital, at 10.51% at the end of the second quarter. The level is only slightly over the regulatory requirement of 10%, but lower than the 12.7% for its Italian rival Intesa Sanpaolo SpA. Since CEO Mustier took the helm in June, two moves were made. He executed the sale of 10% stakes in two of the bank's crown jewels, online broker FinecoBank SpA and Poland's Bank Pekao SA. After the Stress Test, the bank's stock fell suddenly 13% in the days afterward. The response is a new strategic plan slated before end of year. First, an improved UniCredit capital cushion by at least EUR 8 billion. But the figure could be higher if the bank decides to sell a large batch of its bad loans. A major move to unload bad loans, perhaps as much as EUR 20 billion, would be a critical lift of the company's position. The Jackass regards these capital infusions and patches as good money thrown away after bad, since far more writedowns are coming. The full Italian banking system has EUR 380 billion in bad loans. They will tend all to be written down. Think EUR 277 billion in upcoming future bank losses, due to the Paschi actions.

Monte dei Paschi has taken actions which are setting the standard and laying the benchmarks. It presented a plan in July to sell EUR 28 billion of bad loans at 27% of face value. They have effectively set a new benchmark for the pricing of Italian bad loans. Think 73% writedown losses! Since UniCredit (UC) attributes a higher value to its bad loans, a sale of EUR 20 billion of loans would force it to take EUR 2 billion in writedowns, thus increasing the size of a capital increase. UC must sell assets to beef up capital, but such prospects have worsened recently. Turmoil in Turkey would make it hard to sell the bank's Turkish business. Meanwhile, UC has been in talks to sell its remaining 40% stake in Pekao to Polish insurer PZU SA, but the off-loaded portion might be smaller.

Here is the big negative rub. The big Italian banks are uniformly in trouble, at the same time. Any capital increase could also collide with Monte dei Paschi's plans for a EUR 5 billion share sale this winter. Worse, Monte dei Paschi is considering to request that investors convert riskier bonds into shares to reduce its capital increase. Shares are even lower on the totem pole. Colossal paper losses are coming to Italian bond and stock holders for the banks. No big bank can take large steps until after a national referendum in Italy, likely in late November. The movement threatens to remove and topple Italian Prime Minister Matteo Renzi's government, which has already unnerved investors. See MarketWatch (HERE).

◄$$$THE MONTE PASCHI RESCUE IS ON THE ROCKS, AS REGULATORS NOW EXPECT BANK TO FORMALLY PETITION THE ITALIAN GOVT FOR A GIANT BAILOUT... PRIVATE INVESTORS ARE RELUCTANT... ROME CONTINUES TO CONSIDER A FORMAL BAIL-OUT, BUT REFUSES TO CONDUCT PRIVATE ACCOUNT BAIL-INS WHICH BERLIN INSISTS UPON... GERMAN HYPOCRISY IS IN VIEW... MEANWHILE, MORE LOSSES MOUNT AT THE BELEAGUERED BANK. $$$

Ever since Monte dei Paschi failed Europe's latest Stress Test conducted in July, the bank has worked feverishly to obtain a private sector cash injection amounting to roughly EUR 5 billion in fresh capital. Unfortunately, the capital raise has not gone well as third party investors were uncomfortable to allocate funds to a bank. Its recent history of failure and gigantic bad loan portfolio remained a daunting obstacle. The reason why Monte Paschi was forced to seek a private sector bailout is that Germany had repeatedly shut down attempts by Italian PM Matteo Renzi to pursue a public sector bailout. In other words Germany continually blocked a government bailout. Instead, the Germans demanded that the bank should implement a bail-in on private accounts, and write down various liabilities as losses. Rome did not want the public anger, as riots would be likely. Any writedowns would certainly start the process of massive writedowns across their entire banking sector, with benchmark percentages etched on the wall. The substantial retail investment in the bank's unsecured bonds would result in huge private investor losses, more cause for riots. Already some suicides have made ugly news. An equally grand fear is the public reaction might culminate with a run on the bank.

Reuters broke a news impasse. The European regulators expect Italian bank Monte dei Paschi di Siena will have to turn to the government for support. No doubt, Rome would strongly resist such a move if bondholders suffered losses. Making matters worse, in the first half of 2016 the bank has reported more deep losses. The revived concerns about its solvency could quickly ignite fears about the broader banking sector even as the Italian referendum date approaches. Chaos is likely, mixed with defiance, then a string of bank events. Reuters summarized the situation, "While the bank is determined to see through the capital raising, if it were to disappoint, it would be left with a capital hole. Now EuroZone authorities are considering whether state support would have to be tapped after what bankers have described as slack interest in the bank's share offer."

The bank's current valuation is only about 10% of the planned EUR 5 billion cash call, a great discouragement for investors. The Jackass repeats that any investor is an idiot, almost certain to lose 75% of the investment, since the bank will not survive. Being floated is a precautionary recapitalization by the Italian state, needed to make up any shortfall. But even a partial bailout would generate immediate calls by Germany for the high risk bail-ins. Of course, that takes matters back to square one. The spotlight not only on Monte Paschi, in addition to its other almost equally debilitated peer banks. Prime Minister Matteo Renzi earlier this week Renzi took a public swipe at Germany, telling its central bank chief Jens Weidmann to fix its own house. He refers to the EUR trillions in Deutsche Bank derivatives. The conflict is going to be an order of magnitude worse than that between Greece and Germany. Italy can bring down the entire EuroZone banking system, since so large. See Zero Hedge (HERE).

◄$$$ EUROPE MULLS OVER A PIVOT TO ASEAN, WHERE THE FUTURE LIES... THE US-EU CONNECTION DOES NOT SERVE ECONOMIC PROGRESS OR DEVELOPMENT, ONLY FASCIST ROOTS... EUROPEAN MANUFACTURERS ARE PUSHING FOR THE CONCLUSION OF A FREE TRADE AGREEMENT BETWEEN THE EUROPEAN UNION AND ASEAN SO AS TO ELIMINATE STRUCTURAL DISADVANTAGES... THE EU VIEWS ASEAN AS A VIABLE ALTERNATIVE TO CHINA, WHICH IS BEING TARGETED BY THE USGOVT FOR DEEPER TRADE WAR... CHINA IS ALSO SEEN AS VERY PROTECTIONIST. $$$

Most of EU businesses are ready to increase trade and investment in the ASEAN community over the next five years, with Malaysia and Indonesia to emerge as the most attractive markets. The decline in investments flowing from the European Union (EU) member states to the Assn of Southeast Asian Nations (ASEAN) presents opportunities to remove obstacles, or urgent requirements to remove them.

A recent survey revealed that European companies look in prospects more favorably to the Southeast Asian market than to the more protectionist Chinese market. The challenge is for ASEAN political and economic integration. Certain investment ties must be reformed. The stream of ASEAN-bound foreign direct investment (FDI) from EU countries dropped 20% in 2015 to $20 billion, according to the ASEAN Investment Report 2016. The declining trend began back in 2008. At that time, European investments to the ASEAN countries peaked at $32.8 billion. Note the 39% decline in seven years, quite significant.

The EU remains the largest external investor to ASEAN, ahead of the United States, Japan, and China. The conclusion from the study was that most EU businesses are ready to increase trade and investment in the ASEAN space over the next five years, with Malaysia and Indonesia to emerge potentially as the most attractive markets. By contrast, less than half the European entrepreneurs plan to expand their activities inside China in the future. EU firms are indeed finding more obstacles to operate in China, amidst growing protectionism. The perceive a less friendly investment environment, in addition to a lack of perceived reciprocity from Beijing. That might change with the open door policy endorsed and promoted by President Xi at the Hangzhou G-20 Meeting. As of now, European enterprises complain that trade barriers in force undermine their expansion projects for the region.

The Free Trade Agreement concept must be made ready and clear, especially if the Eurasian Trade Zone lusts for European inclusion. A critical issue, the European manufacturers are pushing for the conclusion of a free trade agreement (FTA) between the EU and ASEAN, so as to have structural disadvantages eliminated. Euro-ASEAN negotiations on a free trade arrangement have been stalled since 2009, after two years of talks. Meanwhile, the European Commission sealed a bilateral FTA with Singapore in October 2014 and with Vietnam in December 2015, pending final ratification. The European bloc is also negotiating free trade pacts with Malaysia, Thailand, and Indonesia, in addition to an investment protection agreement with Myanmar (formerly known as Burma). A more advanced ASEAN common market would indeed favor European companies in the same way a more functioning EU single market would promote ASEAN country exports to Europe. The EU views ASEAN as a viable alternative to China, which is grappling with an uncertain economic future. The US is actively promoting ugly hostile trade war, which could intensify if and when the Chinese launch a gold-backed currency, or institute a working Gold Trade Note for trade payment. See Asia Times (HERE) by Emanuele Scimia. He is a journalist and foreign policy analyst, but also contributing writer to the South China Morning Post and the Jamestown Foundation’s Eurasia Daily Monitor.

## RUSSIA BUILDS TIES TO EUROPE

◄$$$ THE GERMAN ECONOMY MINISTER PLANS TO VISIT MOSCOW IN SEPTEMBER FOR COOPERATION TALKS... A BUSINESS DELEGATION WILL PURSUE INVESTMENT OPPORTUNITIES IN RUSSIA, AS A SENSE OF DEFIANCE GROWS. $$$

German Economy Minister and Vice Chancellor Sigmar Gabriel is going to visit Moscow before the end of September for talks on the bilateral economic cooperation between Germany and Russia. They will discuss at a high level the general conditions for German enterprises in Russia and further investment. Gabriel is joined by a delegation of industrial captains, who are gradually wresting control on German policy matters. The business sector is ready to increase German investments in Russia, both in defiance and to bypass sanctions rules. The defiance is growing, to ignore the sanctions dictated by the EU fascist commissioners, who are unelected and only represent the globalist interests. The bypass comes easily as German subsidiaries inside Russia have been permitted to enter production, whose output is destined to supply the Russian Economy directly.

Relations between Moscow and Berlin have been over-shadowed by the Ukrainian crisis and Crimea's reunification with Russia since 2014. The EU & USGovt have dictated mindless sanctions with no basis in justification, only propaganda and lies. Germany was among the Western nations that imposed sanctions on Russia, actually from EU Commission orders without full accord by the German Parliament. Support for the sanctions is almost nowhere seen in Germany, except in the Chancellory where the puppet Merkel operates. Her party lost a crucial election in a massive defeat, again. The EU Commission extended the Russian sanctions for another year from their elevated arrogant fascist offices in Brussels, despite almost no broad support. Expect more defiance by numerous nations. See Sputnik News (HERE). If not careful, the EU Commissioners and staff will be tossed out windows, like the London bankers.

◄$$$ RUSSIA AND TURKEY TO CHANGE THE ENERGY MAP OF EUROPE... THE TURKISH STREAM PIPELINE IS BACK ON... IT COULD BECOME THE KEY ELEMENT OF NEW GAS PIPELINE INFRA-STRUCTURE IN EUROPE... TURKEY HAS YIELDED TO MAKE CERTAIN FINANCIAL CONCESSIONS IN ORDER TO SECURE THE PIPELINE, AND TO GAIN FEES IN INCOME... RUSSIA WILL CONTINUE ON THE SECOND LEG TO REACH THE SOUTHEAST EUROPE REGION, ONLY AFTER ASSURANCES FROM EUROPE ON CONTRACTED DEMAND TO MEET SUPPLY. $$$

The meeting between Russian President Vladimir Putin and Turkish President Erdogan during the G-20 Summit in Hangzhou has given fresh impetus to bilateral relations and joint projects. This primarily relates to the construction of the Turkish Stream pipeline, which may become one of the key elements of a new gas pipeline infra-structure in Europe. It is back on, and gaining critical momentum. Gazprom reported on its website on September 7th. "Gazprom has received, through diplomatic channels, the first permits for the TurkStream project from the authorities of the Turkish Republic after the decision to resume the project this year. At last week’s negotiations between Alexey Miller, Chairman of the Gazprom Management Committee, and Berat Albayrak, Minister of Energy & Natural Resources of the Turkish Republic, the parties reached the agreement to shortly complete all the required preparatory procedures for launching the TurkStream project." The Gazprom CEO Alexey Miller has given his stamp of approval, calling for progress in the transition to its practical implementation. Russian President is fully in favor of pressing ahead, but with a watchful eye on EU assurances for the additional extension.

The Turkish Stream pipeline project involves the construction of a gas pipeline from Russia to Turkey along the bottom of the Black Sea. In all, 660 km of pipeline will be laid in the old South Stream corridor, which was cancelled in December 2014, and 250 km will be laid in a new corridor towards the European part of Turkey. Interest in the ultimate extension to Southeast Europe has benefited from a revival in cooperation between Greece and Turkey. Each nation wants progress, economic development, and income stream. The situation has changed and tensions are relaxed. Both nations see the Western powers as the common enemy, the Greeks with German bankers and the Turks with US meddlesome military. Turkey leads the reform in regional relations, seeking to strengthen ties with Russia, but also Greece and other Balkan countries. Greece has been for a generation a traditional antagonist of Turkey. But keep in mind some of the conflict is generated by the US and NATO, done by the weapons suppliers. A tremendous portion of the Greek Govt debt since 2005 has come in military spending, with fanned flames at the Turkish border. War between the two countries is almost as absurd as between the US and Mexico. Much conflict, much friction, but never hot war.

A big change is the willingness for the Turkish side to bear more costs. This could have been a requirement by the Kremlin and Gazprom for saving Erdogan's political post, and the life of his entire family. Turkey is prepared to make substantial financial concessions to Russia, including paying for half of the pipeline’s construction. The new aspect, President Erdogan has suggested sharing the costs for the Turkish part of the project. The buzz from the Russian camp is that in one to two months, Moscow and Ankara will be ready to sign an inter-govt agreement that calls for the first line for the supply of gas to Turkish consumers to be implemented by the end of 2019.

As for the construction of a second pipeline to carry gas to consumers in Southeast Europe, Russian Energy Minister Alexander Novak has stated that Russia is only prepared to construct this additional long leg after obtaining guarantees from EU leaders that this infra-structure supply line will be in demand. This is a decision for the European Commission. If the EC does not provide solid guarantees, the extension to reach Europe will remain blocked. However, this time around, the leverage from Turkey and Greece will be brought to bear on Central Europe. That leverage is not measly and picayune, since China is in the room with port facility investments and much more. The two corner nations have made powerful friends and partners in China and Russia, while Europe stubbornly insists on suicide under the US & EU guiding hand.

The overall situation in Europe’s energy markets and beyond makes a good argument for implementing the Turkish Stream pipeline project. Refer to the sustained growth of Russian gas exports, the reduction of domestic gas production in Europe, a reduction in secondary gas provision, and the growth of demand in the Asia-Pacific Region. The Turkish camp is well aware of the US sabotage efforts, with eyes open. The Turkish newspaper Hurriyet warns that the US and the European Union might try to do everything possible to thwart the implementation of Russian energy projects. The interference might extend beyond the Turkish Stream pipeline project, like to the construction of the Akkuyu Nuclear Power Plant in Turkey. The newspaper indicated that the US-EU fascists might resort to using terrorist organizations. The ISIS players are nearby. They cite the oil wars as being active. See Strategic Culture (HERE).

This story has been featured in recent reports. It is simply too important not to monitor for its monthly developments. Small changes in the story mean great impact for the region, and control of the eastern part of the Mediterranean Sea. A valid intepretation can be made. The completion of Turkish Stream and connecting supply lines into Southern Europe would constitute an economic surrender to the entire Ukraine War and victory for Russia. The high motives for the war were: A) to cut off Russian energy supply from Europe, B) to prevent the Eurasian Trade Zone from integrating Germany and Europe, and C) to obstruct any wider installation of a non-USD payment system. Completion of the pipeline in bypass of Ukraine would mean motive#A has failed. Its completion would open the door for motive#B to occur over time. The final motive would follow in due time.

◄$$$ GREECE WAITS FOR THE RUSSIA-TURKEY DEAL ON GAS PIPELINE... THE GREEK PRIME MINISTER SAID THAT THE COUNTRY WAS CLOSELY WATCHING THE TALKS BETWEEN RUSSIA & TURKEY... GREECE STANDS READY TO PARTICIPATE IN PROJECTS THAT WILL MAKE IT A NATGAS DELIVERY HUB FOR SOUTHERN EUROPE... THE RAVAGED NATION NEEDS A LIFT IN ITS ECONOMY. $$$

Leaders in Athens are closely watching the Russia-Turkey talks on a pipeline that will bring Russian gas to the Turkish border with Greece. The Turkish Stream pipeline will mean exciting new prospects and opportunities for Greece, which has been financially raped by the EU Commission and German banks for the last three years running. Prime Minister Alexis Tsipras stated, "We are closely watching negotiations for the on-again, off-again relations between Russia and Turkey. We are glad to see those ties mended." Tsipras spoke at the international fair in Thessaloniki. The talks between Russia’s Gazprom and Ankara on a plan to build the Turkish Stream pipeline across the Black Sea were revived last month. Many are the renewed developments with Turkey, since the US failed in a coup d'etat attempt, and Presiden Erdogan narrowly escaped being killed in the process. Turkey is back on with large projects that involve Russia, such as the natgas pipeline, the nuclear plant construction, and the natgas storage facility. Tourism is returning gradually. The momentum will carry into the devastated Greek Economy. They are anxious to participate.

Within this greater process, a rebirth from the scorched earth of sanctions, Greece is preparing to make a case for another gas link to Russia before the European Commission in September. It is a separate gas pipeline. Tsipras made his pitch. He stated, "By conducting a multi-faceted foreign and energy policy, Greece will emerge as an energy hub. A great deal of success was achieved with the Trans Adriatic Pipeline (TAP). But we said we would welcome any other pipeline that comes to our borders." The other pipeline has legs. Russian giant Gazprom, Greek gas corporation DEPA, and Edison from Italy are working to make final plans to build a pipeline that will bring Russian gas across the Black Sea into Italy and Greece. They signed a memorandum of understanding on the deal last February. See Sputnik News (HERE). This time around, the US obstructions will likely fail, since Europe wants the natgas supply from Russia. The effect might be for Europe to boot the great destroyers from the Washington NeoCon gang. The objects at risk for boot will be the TPIP trade union, the Russian sanctions, and the NATO Alliance.

## CHINA EXTENDS BROAD COMMERCIAL TIES

◄$$$ THE FIRST RMB CLEARING BANK IS ESTABLISHED IN THE UNITED STATES, TO BE LOCATED IN NEW YORK CITY AT THE BANK OF CHINA... THE TIMING IS MATCHED WITH THE IMF INCLUSION OF THE RMB CURRENCY IN THEIR SDR BASKET AT THE INTL MONETARY FUND... THE BEIJING GOLDEN HORDE HAVE SET UP A FOOTHOLD IN THE AMERICAN HIVE NEAR WALL STREET, TO COMPLEMENT THEIR ONE CHASE PLAZA PRIZE HOLDING. $$$

The Peoples Bank of China (PBOC) has authorized the Bank of China (BOC) for clearing services in the United States at their New York branch. It will provide financial services in renminbi (RMB) currency terms. It is the first time for China to set up an RMB clearing bank in the United States, a landmark event. The decision was made according to a PBOC memorandum of cooperation signed with the US Federal Reserve Board. As the world's largest economy, the United States is a key destination for the RMB in its internationalization process, both for investment and trade.

Senior Chinese and USGovt officials endorsed a framework for facilitating RMB trading and clearing in the United States financial heartland for the first time during the eighth China-US Strategic & Economic Dialogue concluded in June in Beijing. The BOC New York branch is the largest Chinese financial institution on US soil. China has vigorously promoted global use of the RMB as the world's largest trading nation looks to lower transaction costs in international trade. The RMB Hub at the Bank of China opens almost coincidentally with the IMF SDR basket inclusion of the Chinese RMB to make five top currencies. The latest PBOC report showed that at end 2015, the RMB had become the #3 currency in cross-border trade and financing. It was #5 currency for use in international payments and foreign exchange trading. See Xinhua Net (HERE).

◄$$$ MANY ARE THE DEVELOPMENTS WITH CHINA WITH RESPECT TO TRADE, BUSINESS LINKS, AND FINANCIAL DEALS... CHINA FOCUSES ON COMMERCE, TRADE DEALS, BUSINESS INVESTMENT, IN A DIVERSE STRATEGY... THEY WILL CONTINUE AS A GLOBAL LEADER, AS THEY AVOID THE WAR CARD... CONSIDER NUMEROUS STORIES FOCUSED UPON DIVERSE TRADE DEALS. $$$

*****The GoforIsrael conference took place on September 20th at the Grand Hyatt Hotel in Shanghai. It focused upon Israeli investments. It was organized by Cukierman Investment House and Catalyst Funds. Present were Israeli high-tech and startup companies. Over 30 selected companies were slated to give pitches, to briefly introduce their products and solutions to the Chinese investors. The event featured 1000 Chinese investors and 100 innovative Israeli companies, including Mobileye, Kaminario, Xjet, Tufin, Zerto, Wework, Satixfy, ReWalk Robotics, Juganu, and more. The fields pertain to life sciences, media, telecom, Internet, and green tech. See Globes (HERE).

*****Wealthy Chinese have helped European banks to raise $14 billion since August in capital deals. The appetite of wealthy mainland investors to diversify toward Europe in order to boost capital in preparation for the next financial crisis has brought about some calls for caution. Since August 1st, seven issuers opened order books for their Basel III bond sales to be traded during Asian hours, raising $11.9 billion selling instruments. The assets count as officially recognized capital under Basel III rules. HSBC Holdings separately issued $2 billion of new total loss-absorbing capacity notes in Taiwan. In the first seven months, only three such deals opened in Asia. The German insurer Allianz SE sold $1.5 billion of Tier-2 perpetual notes in August. Also, Standard Chartered in London sold $2 billion AT1 notes, with 31% going to Asian investors. The UBS Group sold similar debt recently. By contrast, Singapore’s DBS Group sold notes at half the bond yield, thus the attraction in Europe.

It should be noted that Asia’s high net worth (HNW)individuals are in possession of wealth that has surpassed counterparts in North America. The Asia-Pacific HNW wealth is at $17.4bn versus North American HNW wealth at $16.6bn. The Asians have entered as major investors in regional bank bonds, seen as less risky, since Asian bank debts are more likely to receive government support. See Bloomberg (HERE).

*****Chinese farmers are acquiring former white-owned farms in Zimbabwe. They plan to cash in on tobacco production. The Chinese have investing $millions in recent months toward tobacco farms. They were badly managed for nearly 20 years, after Robert Mugabe’s mass seizure of white-owned land. They are being revived, in the hope of reaping apotentially huge reward. At least five farms have attracted Chinese investment in Mashonaland Central, a region northwest of capital Harare, that was traditionally one of the country’s best tobacco producing areas. Safe in the assurance that Mugabe’s policy of strengthening ties with China will offer a degree of protection, they have poured money into machinery and are taking advice from international experts. See UK Telegraph (HERE).

*****Canadian Prime Minister Justin Trudeau is cutting an oil deal with China. The new direction has seen Canada moving away from the troubled Trans Pacific Partnership trade union. The country has made commitments to the Asian Infra-structure Investment Bank. Canada is angry over the stalled Keystone Pipeline, and will pursue a major oil pipeline deal. The two nations will construct a pipeline to the Pacific ports in British Columbia, with oil destined for shipments to the Asia-Pacific region. On September 21st, the Chinese Prime Minister Li Keqiang arrived in Ottawa for an official visit, the first time a Chinese premier has visited Canada for 13 years. See Sputnik News (HERE).

*****The giant Chinese bank ICBC is to provide Singapore companies with up to $10.2 billion in funding for infra-structure projects across Asia. The nation of Singapore is making commitments fo the One Belt One Road initiative. As the world's largest RMB bank and Singapore's sole RMB clearing bank, the Industrial & Commercial Bank of China said it intends to provide up to RMB 50 billion in financing services and project financing structure. The giant banks supports the Singapore Business Federation member companies in One Belt One Road infra-structure projects across Asia. See Straits Times (HERE).

*****Chinese rail companies play a big role in Tehran. Metro trains are changing the daily life inside Iran. For instance, the Tehran Metro carries four to five million passengers per day. All five lines in service fo the capital were built by Chinese companies, with two more under construction. Traffic in Tehran is jammed with cars, largely as a result of the oil price being as low as some 40 cents USD per liter ($1.70 per gallon) and the common use of cheap second-hand cars. China is recognized as the lead nation in advanced railway transportation, also subways. Years ago, the country imported the rail cars from China, but recently with China's help, output is more localized since Iran has its production line. Set up in 2003, the factory has 960 Iranian workers and a Chinese training team of 30 people. The factory can annually assemble 450 metro cars and 72 double-deck cars for inter-city trains, and manufacture 144 units of metro car-bodies. The products are installed in Tehran and other Iranian cities like Mashhad, Tabriz, Isfahan, and Shiraz. The bilateral partnership is growing. Iran will be a key element to Eurasian Trade Zone, step by step. See Xinhua Net (HERE).

***** The Hinkley-C nuke plant proceeds in Britain, using Chinese investment plus a UKGovt subsidy. Britain's first new nuclear plant in a generation is to be built at Hinkley Point C in Somerset, after the Government approved a controversial subsidy deal and Chinese investment in the GBP 18 billion project. See UK Telegraph (HERE). As footnote, the UK leaders wish to avoid a crisis. The fear in the halls of government about lights out from shortages is real and palpable. The old coal plants have gone off line, spurring the officials into action. North Sea oil has been on the tail end of the decline curve for years now. A English pal of a Jackass colleague reports that his wife was in shock years ago, when forced to feed coins into a electric towel rack in a hotel room for the sole source of heat in the unit.

***** The Port of Melbourne in Australia was sold to a consortium of Chinese backers. A consortium of global and domestic funds, backed by investors including China Investment Corp, agreed to buy Australia's busiest port for A$9.7 billion (=US$7.3 bn). It was finally higher than the original stated price. Witness another important investment for infra-structure to fit into the One Belt One Road strategy. The price tag for Port of Melbourne fell short of the country's largest privatization deal on record, the A$10.8 billion sale of electricity grid company Transgrid to a global consortium in November 2015, but still ranks among its biggest. See Reuters (HERE).

***** China's export machine is grabbing more of the global market. Its global export share climbed to 14.6% last year, up from 12.9% the year earlier, the highest proportion of world exports ever in Intl Monetary Fund data going back to 1980. A point bears note on a shift internally to the Chinese Economy. Even as its export share climbs globally, the manufacturing portion is down somewhat, as services and domestic consumption emerge as the new growth drivers. Those trends are likely to continue. Exports are estimated to fall 4.0% from a year earlier and imports are seen dropping 5.4%, leaving a trade surplus of $58.85 billion. Compare to the US trade deficit of more than $500 billion annually. See Bloomberg (HERE).

*****The Belt & Road media community has 29 countries lined up to join. Slowly, the global media is also pivoting away from cabal control. Many auxiliary systems must still move away besides the press network from the truly evil syndicate. After the credit card sector, the debt rating agencies, and bank transaction system, more progress has come. The Chinese have just given approval for credit default swaps in trading arenas. See Market Watch (HERE). The latest breakaway extensions have been with food selection, online news outlets, and movie production. The have turned hostile toward Apple factory sweat shops too. The trend is clear. The Chinese giant Alibaba is having an influence in Hollywood already, with productions of "Mission Impossible" and "Star Trek" recently. See YouTube (HERE).

◄$$$ CHINESE BILLIONAIRE IS LINKED TO THE GIANT ALUMINUM STOCKPILE IN A MEXICAN DESERT... US-BASED ALUMINUM EXECUTIVES CLAIM LIU ZHONGTIAN, FOUNDER OF CHINESE METALS CONGLOMERATE CHINA ZHONGWANG, USED A FACTORY IN MEXICO TO GAME THE GLOBAL TRADE SYSTEM... THEY ACCUSE THE CHINESE MOGUL OF TRANS-SHIPPING VIOLATIONS... THE US-BASED ALUMINUM SMELTING PLANTS ARE FEW IN NUMBER, WITH HUGE IMPORTS FROM CHINA INSTEAD. $$$

An aerial view of the aluminum stockpile around the San Jose Iturbide plant, owned by Aluminicaste Fundicion de Mexico, is shown from June 2016. It spans over two square miles of stacked aluminum, ready for shipment to China. Two years ago, a California aluminum executive commissioned a pilot to fly over the Mexican town of San Jose Iturbide, at the foot of the Sierra Gorda mountains, and snap aerial photos of a remote desert factory. He made a startling discovery. Nearly one million metric tons of aluminum sat neatly stacked behind a fortress of barbed wire fences. The stockpile, worth some $2 billion and representing roughly 6% of the world’s total aluminum inventory, quickly became an obsession for the US aluminum industry to monitor. The metal is enough to produce 2.2 million Ford F-150s or 77 billion beer cans, a staggering volume.

The aluminum stockpile has become a new source of tension in US-Chinese trade relations. The US players claim that the mysterious cache was part of a brazen scheme by one of China’s richest men to game the global trade system, skirting the rules. Aluminum industry representative Jeff Henderson says he is convinced that China Zhongwang Holdings Ltd, a Chinese aluminum giant controlled by billionaire Liu Zhongtian, tried to evade US tariffs by routing aluminum through Mexico to disguise its origins, It is known as trans-shipping. Henderson has been a primary adversary of Liu and his practices, while serving as president of the Aluminum Extruders Council, a US trade group. Liu Zhongtian, a member of the Chinese ruling Communist Party, denies any connection to the Mexican aluminum or trans-shipping. The clever fellow made joking quips from his company's Liaoning plant in China, with reference to Mexico being a dangerous place.

Company records, trade documents, and legal filings, along with interviews of people who have done business with Liu, raise doubts about his account. They show that hundreds of thousands of tons of aluminum were shipped to Mexico from China through a series of companies, including one owned by Liu’s son, and another company owned by someone who describes himself as a long-time business associate of the Chinese billionaire. The USDept Commerce is investigating the Mexican aluminum stockpile with respect to numerous trade complaints by the US metals industry against China, which focus upon allegations of trans-shipping. Below are shown some stockpile elements.

China’s booming industrial production has energized global markets, with a huge effect in aluminum trade. Pushed by access to inexpensive electricity and tax breaks, Chinese aluminum output doubled between 2010 and 2015. The export of aluminum from China to the United States is the big untold story. The USEconomy imported 40% of its aluminum by 2015, up from only 14% in 2010. By the end of 2016, only five aluminum smelters will be operating on US soil, down from 23 smelters in 2000. Any trade sanctions would quickly result in aluminum shortages in the United States, a nasty backfire. Alcoa Inc, the largest American aluminum maker, is splitting in two. The giant firm decided to isolate its profitable parts making units from its troubled raw aluminum operations. Alcoa CEO Klaus Kleinfeld last year claimed that illegitimate Chinese exports were the major driver of lower aluminum prices. The US has become a very small player in global aluminum output, as seen in the graphic. See Wall Street Journal (HERE).

## SOMBER GOLD MARKET COILED

◄$$$ GOLD PRICE IS HIGHLY CORRELATED WITH THE CHINESE MONEY SUPPLY... RISING INCOMES IN CHINA & INDIA INDICATE AN ENORMOUS OPPORTUNITY FOR GOLD INVESTMENT... CHINA IS A MAJOR PLAYER IN THE GOLD MARKET, WITH #1 MINE OUTPUT, SIGNIFICANT PHYSICAL DEMAND, AND THE SHANGHAI TRADING ARENA... PRESSURE FROM ASIAN GIANTS WILL CONTINUE PUSHING THE GOLD PRICE UPWARD, FROM BASIC PHYSICAL DEMAND. $$$

The relationship between Chinese M2 money supply growth and the price of Gold is revealed as interesting, a phenomenon heretofore not noticed by the Jackass analyst. Money supply is not the same as income growth, but it indicates further evidence of more available money sloshing around, usually devoted toward capital formation more so than in the West. Besides, the more people who have access to money in the sequence, the more it can be converted into gold purchases. A rather tight correlation is direct and clear over the last ten years, which the Jackass guesses roughly at 50% to 60%, a high figure indeed. The China factor is a key card in the gold price trends and movements.

The rise of the middle class in both China and India testify to gold demand resurgence. According to Boston Consulting Group (BCG) data, consumer spending in both China and India will soon overtake spending in Germany and France. It is also on the trajectory to match Japan’s level of consumption. The affluent class of the two extremely populous nations (each over 1 billion) will consume as much as some major countries by 2020. Define affluence as annual incomes of at least $20,000. By that time, the number of affluent households in China will grow to 280 million, equal to 30% of the its urban population. That is quite a leap up in just four years, from today’s 120 million households labeled as affluent. It is also good news for the Gold trade.

As for India, the number of middle class consumers is expected to triple between now and 2025, eventually reaching 89 million people, according to the McKinsey consultancy. Even more incredible is that by 2030, the economic output of India’s top five cities alone is expected to reach the size of five middle income countries today, according to McKinsey. The city of Mumbai has a massive $245 billion economy, for example. Its GDP could soon exceed the entire country of Malaysia. Likewise, India’s capital city of New Delhi could one day have GDP bigger than the Philippines. See Value Walk (HERE). Notice the staggering meteoric expected rise in consumption potential for both China and India for the remainder of the decade. Given the high correlation with monetary growth and the price of Gold, the pressure will be on fierce for a continued upward precious metals price push. Notice the flat growth for Germany, France, and Japan.

◄$$$ SWISS AND NORWAY CENTRAL BANKS EACH MOVED $1 BILLION OF FRESH PHONY MONEY INTO GOLD MINING STOCKS (BUT NONE INTO BARRICK)... THEY ARE PREPARING FOR A BACKDOOR GRAB OF GOLD BARS... THEY MUST EXPECT A FINANCIAL PLATFORM COLLAPSE AND CURRENCY CRISIS OR RESET. $$$

Events are moving fast behind the scenes inside corrupt Elite chambers. For the last three decades, Western central bankers have told the masses that gold is a barbarous relic, that it earns no yield, that it just sits around uselessly. They have encouraged the people to shed their protection and move into the sanctity of their highly corrupt and highly manipulated stream of paper assets. Gold is true sanctuary, while paper assets are trash. During this time period, the gaggle of central banks have discharged hard earned wealth in the West, shipping massive quantities of precious metals to prudent lands in the East, never to be seen again. It has been one of the greatest sellouts of humanity in modern history.

A panic has become evident, at the back end of the Global Paradigm Shift, and the lead portion of the Global Financial RESET. Many Western central banks are attempting recently to accumulate metals in stealthy ways. Consider the Swiss and Norwegian central banks, which have each printed close to $1 billion dollars of fiat money with a purpose, for to move the funds created from thin air directly into precious metals. They are not chasing physical metal. If they did, the limited tight gold market would respond to a $1 billion input. They would risk blowing the market apart, sending prices potentially catapulting several $100 higher. They did the next best thing. They bought shares in the gold mining firms. These movements of CB funds are likely the true cause of many of these mining stocks being up drastically this year. Next they must find a way to transform stock shares into gold bars. They clearly are fearful of a systemic collapse, or at least a grand shift in global currency regimes. They are corrupt and devious, but not slow and stupid. They are making some preparations, before the door shuts and the escape routes are cut off. But they make investments from printed money for their own dedicated benefit.

Below, one can find two lists compiled by Smaulgold, the Swiss booty in the graphic, the Norway booty in a simple list of leading stocks invested in. The lists showcase the current gold mining stock holdings of both the Swiss and Norwegian central banks. The Swiss CB holds $988 million in gold mining stocks. The Norway CB holds a similar $966 million in gold mining stocks. These are relatively small sums of assets in central bank terms, which hold typically in hundreds of $billions for assets. However, the nearly $1bn each is very significant for mining asset terms.

Irony is thick, since the primary central banks have a majority of their gold bullion stolen from friend and foe alike, such as during WW2 or recent Arab Spring heists. The Jackass would like to print a mere $10 million from which to purchase a small warehouse of gold bars, if it is not too much trouble to fulfill. No, wait! Make that $20 million, since no difference on the effort to print money with zero cost, as Bernanke claims. Besides, a couple worthy Latina gals might enjoy a new car, or a paid-off mortgage for each mother's home. Pass the chayote, papaya, and the free dinero, por favor.

◄$$$ USGOVT DEBT IS MORE THAN ALL THE WORLD’S PHYSICAL CASH, GOLD, SILVER, AND BITCOIN COMBINED... A REVERSAL WILL BE SEEN AFTER THE GLOBAL CURRENCY RESET, WHICH WILL CUT LOOSE GOLD FROM ITS SHACKLES. $$$

The USGovt national debt is quickly approaching $19.5 trillion. It rose by a cool $1.33 trillion in 2015, sitting currently at $19.482 trillion. It is difficult for mere humans to grasp such volumes of money. A stack of a thousand $1 bills would reach the top of the Empire State Building in New York City. A stack of a billion $1 bills would reach into the earth's stratosphere. A stack of a trillion $1 bills would reach half way to the moon. Here is a picture of what $1 billion looks like in neat stacks of $100 bills. These are $100 bills, not $1 bills. Shown is an expanse perhaps over ten times bigger than a football field, each stack perhaps eight to ten feet high. Now imagine twenty of these fields of paper dreams, to equal the USGovt deficit of almost $20 trillion. The Gold price must exceed this amount of debt, plus all the other several $trillions from other Keynesian devotees and moronic nations who pile up debt. Look for a sharp rise in the Gold price in the coming months and years.

A grandiose financial charade is going on. The systemic collapse is coming to a climax, assured by intractable USGovt debt, illicit USFed monetary inflation with QE unabated, banker welfare for the Wall Street banks in bond redemption, grotesque Gold market price suppression, unbridled bank derivative abuse to create leveraged machinery for USTBond purchase, and endless war to defend the USDollar. Most people realize that their standard of living is being eroded. The global economy is under great strain, with a recession not properly treated. Household security is fast vanishing with massive job losses.

TYPE OF CURRENCY

VALUE

Cash

$5.0 trillion

Gold

$7.7 trillion

Silver

$0.02 trillion

BitCoin & Cryptos

$0.011 trillion

One way to understand the amount of USGovt national debt is to simply look at in context to how much physical currency is out there. The comparison does not include property, such as residential homes and commercial buildings. It is a useful comparison. The amount of USGovt debt exceeds all of the world’s physical cash, the quasi-liquid forms of gold, silver, and bitcoin combined. The liquid currency total is around $12.73 trillion. Expect the precious metal portion to double or triple on the other side of the Global Currency RESET. The PM portion must cover the existing major (formerly) industrialized national debts. See Gold Broker (HERE).

◄$$$ AUTHORITIES IN AUSTRALIA SEIZED OVER 5000 OUNCES OF SILVER FROM MAN’S HOME, IN A SUPPOSED TAX FRAUD CONFISCATION CASE... IT IS NOT CLEAR WHETHER THE TARGET WAS THE SILVER OR A TAX PAYMENT. $$$

Two weeks ago, in the Australian state of Queensland, federal police confiscated 5465 ounces of silver from a man’s home. The haul was worth around $106,000. The raid was part of a larger series of police actions instigated by the Australian Tax Office against individuals suspected of tax evasion. Perhaps some cross referencing took place on precious metals purchases with national dealers, unsure, maybe not. The lesson is clearly not to keep the majority of valuable assets at home. If and when any official legal authority comes knocking at private residences, they can lawfully confiscate anything that looks valuable, including cash and precious metals, even bearer bonds and art works. The important downside is that once armed agents seize property or freeze bank accounts, it is up to the individual to prove one's own innocence, even though they have deprived the person of financial resources to do so. See the story by Simon Black, the Sovereign Man, at Silver Doctors (HERE).

◄$$$ CANADIAN MINT EMPLOYEE ALLEGEDLY HID $180K WORTH OF GOLD IN HIS RECTUM CAVITY... THE MANY PUCKS (WORTH $6K TO $7K EACH) WERE SOLD TO AN OTTAWA GOLD DEALER, FOLLOWED LATER BY DEPOSITS WITH OVERSEAS TRANSFERS... THE BANK ACTIVITY ATTRACTED ATTENTION, WHICH LED MOUNTIES TO FIND A FEW SPARE PUCKS AND A TUBE OF VASELINE... HIS LIFE WILL CHANGE, SINCE HE IS NOT A BANKER AND WILL SUFFER THE FULL IMPACT OF THE CRIMINAL DEED. $$$

A Royal Canadian Mint employee has been accused of smuggling around $180,000 worth of gold, hidden and smuggled out of the mint facility in his rectum. Leston Lawrence, age 35 years, fired from the corporation, has been at the center of a court case. In addition to the horrible publicity of simply stealing gold nuggets, the case shines light on feeble security protocols at the facility. According to the Hamilton Spectator, the gold butt madness began in 2015, when a bank teller in Ottawa grew suspicious of Lawrence's alleged activities. The big nuggets are called pucks in the gold world.

The story goes that Lawrence sold several gold pucks worth close to $7000 each, to an Ottawa Gold Buyers store. The teller was concerned not only because Lawrence was a Mint employee, but he also had an unusual number of deposits. Worse, he frequently asked for overseas transfers. The Toronto Sun reports the Royal Canadian Mounted Police (RCMP) were eventually notified. When Mounties began investigating, they swooped down only to quickly find four of the aforementioned gold pucks in Lawrence's safety deposit box, as well as a container of Vaseline. The defense has been as feeble as the mint's security procedures. The gold pieces were left sitting around in open buckets at the facility. Lawrence faces charges of theft, possession of stolen property, breach of trust, and laundering the proceeds of crime. The case has concluded, with the judge to deliver a decision by November 9th. See Huffington Post (HERE).

It would be better to steal gold from the SPDR Gold Trust, like the Wall Street banks continue to do. They dont need any vaseline, since the ramp dollies are always lubricated. Maybe the poor sot should claim he founds the little nugget pucks in the parking lot of the RCMint next to his car, by dumb luck, and challenge the court to prove otherwise. To be sure, the mint authorities cannot prove quantities are missing on their grounds. The RCMint is replete with Keystone Cops.

Rob Kirby added some insight. It is curious to begin with, that the RCMint found it worthy to accept scrutiny or even bother to investigate $180k worth of missing gold. Remember, back in 2009 that 17,500 troy oz of gold was found to be missing, following an RCMint audit in Ottawa.The Toronto Star reported that the missing gold was the result of, "a combination of bad counting, bad cleaning, and sales of gold slag below market value." The explanation was pure rubbish! The value of the missing gold was over $200k. At the time, Kirby theorized that the RCMint was victim to a considerable number of fake tungsten gold bars from the Bush-Clinton gangsters. Therefore, an imbalance of scrutiny and attention has been given to some bold young man with a golden anal fixation. See The Star (HERE).

## ECONOMY ON EDGE OF BREAKDOWN

◄$$$ US INDUSTRIAL PRODUCTION FELL TO MINUS 0.4% IN AUGUST, WHILE CAPACITY UTILIZATION FELL TO 75.5%... THE VISIBLE SIGNS ARE CLEAR, MARRED BY DEEP POWERFUL ENTRENCHED USECONOMIC RECESSION. $$$

The Obama Admin charlatans and the Wall Street shamans can preach sluggish growth all day long, until the cows come home. If the farmers cannot keep the barns warm, the cows will not come home. The reality is different. The reality is of economic decline. Notice industrial output down hard. As capital is killed by the USFed QE official monetary policy, factories go idle. As the USDollar rises from the QE effect on rising financial markets (stocks & bonds), the USEconomy suffers from its meager export trade. Notice how not even lower energy costs help the industrial sector. See Anthony Sanders (HERE).

◄$$$ THE LATEST NFIB SURVEY TRIPPED ECONOMIC ALARMS, AS IT SUGGESTS WEAK ECONOMIC PROSPECTS IN THE SMALL BUSINESS SECTOR... THE SMALL BUSINESS CONFIDENCE IS AT LOWS THAT INDICATE THE ONSET OF A NEW RECESSION... THEY MUST CONTEND WITH OBAMACARE TAXES. $$$

Last week, the National Federation of Independent Businesses (NFIB) released their monthly Small Business Survey. Its data should not be overlooked by the mainstream media, but it is. The MSM is too distracted and deceived and deluded, and paid to spout a false narrative. Out of the 26 million businesses registered in the United States, only 6 million have active employment and generate revenue. So 20 million businesses are essentially not doing anything, except sporting a sign or wearing a cool company shirt, or enjoying a memory long passed, or carrying on a defunct family tradition. Of the six million active companies, almost 80% have fewer than five employees. Simply, it is small businesses that drive the economy, employment, and wages. Therefore, what the NFIB says is extremely relevant to what is happening in the actual economy versus the headline economic data from government propaganda channels. The Obama objective was marxist from the start. Small business is the arch enemy of such marxist fools and demagogues.

In August, the survey on business confidence declined a smidgeon to 94.4 on the index. The deterioration continues. Despite an improvement from the financial crisis lows in 2008, the current levels remain far below the levels normally witnessed at the late stage of an economic recovery. The index is ready for another decline. There is no recovery, only talk of recovery, just deceptions of a sluggish recovery that does not exist. The surge in optimism has returned the business confidence, but to lower levels, to those normally associated with the onset of recessions. The author of the article claimed, "There is no remote hint of recovery."

However, the internals of the report were troublesome, as noted by the NFIB. "Once again, the NFIB survey showed no signs of strength in the small business sector. Uncertainty seems to be the major enemy of economic progress, and the political climate is a major contributor to the high levels of uncertainty that we have seen. The current economic environment is not a good one for strong or sustained growth." See Real Investment Advice (HERE).

◄$$$ OBSERVE A DREADFUL SET OF SNAPSHOTS FOR THE USECONOMY... ALL INDICATORS ARE POINTING DOWN... IT IS MIRED IN DEEP RECESSION THAT ONLY A NEW SCHEISS DOLLAR CAN RESCUE IT FROM, COUPLED WITH AN ABRUPT END TO THE HYPER MONETARY INFLATION. $$$

◄$$$ US-BASED COMMERCIAL BANKRUPTCIES HAVE SOARED... A TREND CHANGE IS CLEAR SINCE 2015, AS SYSTEMIC BREAKDOWN RISES AS A RISK. $$$

Bankruptcy is booming in the USEconomy this year. Typically commercial bankruptcy filings reach their annual peak in March and April. Then in June and July, filings typically decline, and they did in the current year. In August, the BK filings jumped. However, the recent moves are far beyond seasonal, far more alarming, and raise questions about a systemic breakdown. It was the worst August since 2013 for BK filings, which were up 44% from September last year. They are up 29% from August last year. A radical shift is evident since 2015, as the wheels are fast coming off the US Wagon. See Investment Watch (HERE).

◄$$$ DALLAS POLICE PENSION FUND IS ON THE VERGE OF COLLAPSE AS RECORD NUMBER OF COPS SEEK FULL WITHDRAWALS... THE POLICE & FIRE PENSION FUND IS NEAR BUST, FROM FRAUD AND MISMANAGEMENT... IT IS $3 BILLION UNDER-FUNDED, AND SEEKS $600 MILLION IN IMMEDIATE RELIEF INFUSIONS TO STAY AFLOAT FOR NEXT MONTH. $$$

A record number of police are rushing to withdraw retirement funds as quickly as possible before the whole system goes bust. The news of the Central States Pension cutbacks and ruinous model have reached far and wide, as the USEconomic recession and ultra-low interest rates combined to crush the trucker pension. The Dallas situation is more ugly, from dodgy investments, fraudulent accounting, lousy 2-to-1 ratio of payees to retirees, and a rush to the exits. The ratio matches the Central States Pension Fund ratio.

In August, the Dallas Police & Fire Pension Fund (DPFP) was on the verge of collapse after a series of shady real estate investments resulted in massive markdowns of pension assets, the removal of the fund's CIO, followed by an FBI raid. The DPFP covers nearly 10,000 police and firefighters. It is on the verge of collapse, while facing benefit cuts to save the plan from complete failure. According the the National Real Estate Investor, DPFP was once applauded for its diverse investment portfolio, which turned out to be clever fraud of many stripes. The pension's former real estate investment manager, CDK Realy Advisors, was raided by the FBI in April 2016. In the following weeks, the fund was forced to mark down their entire real estate book by 32%. It contained a gaggle of illiquid assets that were marked at their own discretion, with wonderful returns reported. Hey! That is what the big US banks do!

The rampant fraud at the DPFP left the fund over $3 billion under-funded and its board of directors with no other option but to seek a $600 million infusion from taxpayers to keep the fund afloat. The fund's fundamentals revealed $2.11 of annual benefit payments to members for every $1.00 contributed to the plan by members and taxpayers. Such is never sustainable, since payouts are always much larger than contributions. The emphasis was on taxpayer funding, with plenty of borrowing against assets reserved to cover future liabilities. The assets were often impaired, thus constituting a typical Ponzi Scheme.

After exposure, the problems amplified. The Dallas police officers are catching on to the Ponzi and rushing to withdraw retirement funds as quickly as possible before the whole system goes bust. As reported by a local ABC affiliate, Dallas police officers are retiring at a record rate. They are opting for full cash withdrawals of their pension benefits as opposed to equal monthly distributions for life. The majority do not believe the fund will be solvent long enough to pay them for very long. Consider it a nasty reaction with plug pulled in numerous directions. See Zero Hedge (HERE). The financial corruption in the United States is as engrained and comprehensive as it is broadbased, following the lead of Wall Street banks and the USGovt financial practices, including the rigged financial markets. It extends to every corner, including charity organizations.

◄$$$ THE TECH LEADER DELL/EMC PLANS TO CUT 2000 TO 3000 JOBS AMONG ITS US-BASED WORKERS, AFTER REQUESTING 5000 H-1B VISAS & GREEN CARDS, WHICH WILL BE USED TO IMPORT FOREIGN WORKERS... DELL/EMC MUST MANAGE ITS BLOATED NEW DEBT SINCE GOING PRIVATE... REDUCED OVERLAP AND EFFICIENCY CUTS WILL HELP TOWARD THE GOALS... OBSERVE THE OBAMA ADMIN CONTRIBUTION AND LEGACY WITH A BIG HAND IN FOREIGN WORKER POLICY. $$$

The icon firm is suddenly in trouble after a blockbuster tech merger. Last October, a truly massive merger acquisition took place, as Dell Computer entered the largest tech sector deal ever. It acquired EMC for $67 billion. The Dell side makes personal computers and some integration equipment. The EMC side makes extremely advanced disk storage and maintenance equipment. The layoff job cut rumors have finally hit. Word is out that Dell will cut 2000 to 3000 jobs. The overlap of certain functions is obvious and expected, sure to result in some streamline cuts. Dell is struggling to find some efficiencies and synergies to save about $1.7 billion in the first 18 months after the deal closes. Combined they have about 140,000 employees, which might suggest the trimming has a long ways to go. The ugly part of the story has emerged, more outsourced labor, which is coming to town.

Dell/EMC is bringing in foreign workers, mostly from India. Between 2014 and 2016, Dell applied for 2039 H-1B visas and 256 Green Cards. The EMC house applied for 2347 H-1B visas and 453 Green Cards. Together they total 5095 applications. These are just applications, not all of which will be certified. Of those that are certified, not all entrants will be hired. But the data for 2016 is not yet complete. The trend, actively encouraged at times with bonuses paid by the Obama Admin to the tech firms, calls for laying off existing workers in the US, and bringing it foreign workers on H-1B visas. The Senate has been looking into some of the abuses. In February, Senator Richard Blumenthal sent US Attorney General Loretta Lynch a letter requesting a USDept Justice investigation. But the tech lobby will likely put the Senate back on track soon, with more kickbacks and bribes, maybe even a small contribution to the Clinton Foundation.

The harsh reality is that Dell must reduce costs and improve profits. The Dell corporate credit rating is at the upper end of junk. It is loaded with heavy debt, stemming from its move to private hands (not a publicly held company with shares traded anymore). Now the EMC deal has piled new debt on the company, including $20 billion of bonds it sold in May, followed by a $5 billion leveraged loan. See Wolf Street (HERE). As footnote, firing Americans to hire foreigners is part of the Obama Economic Plan, perhaps a reflection of the new trade unions proposed. This part of the Obama Admin legacy is utterly atrocious. The stories are heard from numerous clients, especially some who have canceled their HTLetter subscription after losing their jobs to an H1-B foreign entrant earning 30% less.

◄$$$ FORD MOTOR IS MOVING ALL PRODUCTION OF SMALL CARS FROM THE UNITED STATES TO MEXICO... THE SMALL CAR LINES HAVE MUCH TIGHTER PROFIT MARGINS... REGARDLESS, THE US-CORPORATIONS CONTINUE TO ABANDON THE NATIVE LABOR MARKET... GHETTOS LIE IN THEIR WAKE. $$$

In a move that could draw the worst kind of attention, Ford Motor will be shifting all North American small car production from the United States to Mexico. CEO Mark Fields also says the automaker making a notable commitment to develop more than a dozen new electrified models by 2020. The production facilities for small cars will have moved to Mexico over the next two to three years. The profit margin is typically lower for small car sales, across the entire industry. Shifting their assembly to Mexico can reduce costs. Political attention has come, as Republican presidential nominee Donald Trump has singled out Ford for moving jobs to Mexico. Fiat Chrysler has also made similar moves, shifting car production out of the United States in order to focus on pickup trucks and SUVs (sport utility vehicles) in its domestic carmaking operations. Expect the Chinese to enter the competition very soon, both as low cost producer and with usage of Japanese technology.

The trend in the last several months, with lower gasoline prices, is for American buyers to favor larger vehicles, especially pickup trucks and higher riding SUVs for their personal use. Those vehicles carry much higher profit margins than for small vehicles. The future of smaller US cars might depend on the ability to electrify their power trains and introduce them to ride sharing fleets where they can generate revenue from fares paid by multiple riders. CEO Fields and other Ford executives have publicly outlined an aggressive plan to invest $4.5 billion over the next four years. These will include new models in commercial vehicles, trucks, SUVs, and performance vehicles. Ford also reiterated its commitment to developing an autonomous vehicle by 2021. The company believes that autonomous vehicles could account for up to 20% of vehicle sales by 2030. Think robotic cars.

The shift of Ford production of small cars is heading to Mexico. Above, a lineup of Ford Focus vehicles is seen on an assembly line at the Assembly Plant in Wayne Michigan. It will shut down or be transformed. See MSN (HERE) and Freep (HERE). More abandonment of the USEconomy is seen by the US Corporations. Ford Motor was a supporter of the Hitler War machine. The disdain for American workers continues in the same theme. This is exactly the opposite of stimulus for the USEconomy.

◄$$$ CHINA IS REVIVING THE AMERICAN HEARTLAND, ONE LOW WAGE AT A TIME... THE CHINESE ARE ACQUIRING US-BASED COMPANIES AT AN EXTREMELY RAPID AND ACCELERATING CLIP... SO FAR THEIR 2016 PURCHASE VOLUME IS DOUBLE ALL 2015... MORE CONVERSION OF USTBONDS INTO HARD ASSETS TAKES PLACE, AS CHINESE TAKE OVER THE US MANUFACTURING SECTOR STEP BY STEP...

THE CHINESE ARE SAVING BUSINESSES, INVESTING IN THEM, AND AVOIDING BIG JOB CUT EPISODES... THE PAYSCALE IS LOWER, FRINGE BENEFITS LESS, BUT ECONOMIC DEVELOPMENT IS OCCURRING... THE EARLY STAGE OF COMMERCIAL COLONIZATION HAS BEGUN. $$$

For six years, the General Motors factory in Moraine Ohio used to make Chevy Trailblazers. It has sat abandoned, a rusting monument to the decline of the American auto industry. Finally the Moraine plant is humming again, under new Chinese management. It has Chinese supervisors. The transformation is well along, from free trade zones in the last few years to actual plant conversion. Drive along Interstate 75, through America’s industrial heartland, and one can quickly see many Chinese-owned firms like Fuyao. They are setting up shop in states such as Ohio and Michigan, where traditional manufacturing has been hollowed out. Often the villain is the highly touted globalization movement by the vile Western Elite. Read outsourced industry in many cases, or from direct competition with China after US investment in foreign lands.

But away from the sound and fury of the national presidential campaign, with bashing of China and criticism for the pain of globalization, state and municipal governments have welcomed Chinese firms with open arms. When it took over the GM plant, Fuyao won a $9.7 million tax credit from the state of Ohio, which also kicked in a $1 million grant for work on access roadways. The various initiatives are attracting international capital, precisely as the Jackass has been describing. What has begun in the past two years will continue into a grandiose national movement in the next two years, with national security (survival) cited. In 2016, an impressive $75 billion of Chinese acquisitions have taken place across the United States, with very little attention given or paid. The volume is more than double the previous record. The asset targets range from luxury hotels to aluminum foil makers to car plants. Since 2008, Chinese companies have invested $4.1 billion in Ohio and Michigan alone, according to the Rhodium Group, a research firm.

Fuyao acquired roughly half the old GM plant in 2014, spending $450 million to buy and remodel it. Their story is aggressive. It started out as a small producer of covers for water meters, later to become the world’s second largest auto glass supplier. They have spent ten years entering the US market. The Moraine and Dayton area has been hard hit recently. The shutdown of the GM plant two days before Christmas in 2008 was followed in 2009 by the departure of NCR Corp to Atlanta after pioneering the cash register sector for a century in Dayton. A clash of foreign investment encounters the damage of globalization, always both. The Jackass is quick to point out the foreign investment always comes years following the outsourced industry with its deep damage and economic wounds. The investment comes from entrepreneurs who benefited from the outsourced industry, decades ago. It is full circle on the outsource phenomenon. First the US loses industry, only later to be bought out by the overseas businesses and their owners. Witness the early stages of commercial colonization.

The contrast is evident in pay scales and fringe benefits. Note the fewer jobs and lower pay scales, often formerly high salary with hefty benefits replaced by lower hourly wages and an invitation to join the nearby HMO for health care programs. The Chinese owned firms are focusing on increased automation, thus fewer workers at the plants. They are managing the costs. A line worker at Fuyao starts at $12 per hour, equivalent to an annual salary of about $25,000. GM workers at the old Moraine plant could make at least twice that, topped off by perks like defined benefit pensions, according to union officials and former employees. Chris Baker is a 40-year-old sales rep based near Moraine. He summed it up. "When you do not have enough protections for American workers, and when you have a globalized economy, this is what happens. This is the new normal. It is very sad."It is commercial colonization after a full generation of poor economic guidance and corporate abandonment. Germany does not have this problem! They did not outsource their industry to Asia and to Emerging Markets. They did not commit economic suicide. Remember the corporate pronouncements in the 1980 and 1990 decades, of low cost solutions in outsourced industry, which would ultimately benefit the USEconomy via cheaper consumption while the intellectual property and distribution channel benefits would remain. It was a grand lie, and the Jackass never bought their lie. Witness the result in colonization.

China will follow the Japanese lead. Toyota is the third biggest seller of vehicles in the US, ahead of Chrysler. The Chinese carmarkers are lined up, building strategy, laying the groundwork for an invasion. They are coming. The Chinese will be selling cars and possibly small trucks in the United States before the end of this decade. The Chinese-owned Volvo is already selling units in the US market. Certain acquisitions will enable their entry more easily, like with Volvo. Later come the other car lines from the same parent corporation. For now, the Chinese parts makers are taking the lead, and location is key to their investments. Fuyao’s glass factory in Moraine is located close to Big Three plants in the Detroit area, as well as near a Honda factory in Marysville Ohio.

Other supplier businesses are emerging from bankruptcy restructures, like Nexteer Automotive. They are in operation, perhaps not humming along, but yet alive. Instead of an asset chop by private equity firms, the Nexteer was sold for $465 million to Chinese investors. It is now majority owned by state aircraft maker Aviation Industry Corp of China. One of the first moves by AVIC was to ratchet up spending on research and development by 50 percent. Nexteer turned a profit of $205 million last year and is worth $3.9 billion. The Chinese in Nexteer's case rescued a firm, invested in it, and managed a restoration with success story to tell. The industry is calling China a source of plentiful patient capital for American companies, willing to wait for profitability to arrive in a couple years time. Part of the strategy, in the Jackass opinion, is to commit toward reconstruction in America in order to reduce the trade friction with China and to reduce the US trade deficit, both. The Germans are doing something similar with Russia, but with motive to skirt the sanctions. The Chinese are entering rooms where vast tracts of US jobs are at risk of being lost. See Bloomberg (HERE).

◄$$$ THE WAR ECONOMY IS EXPOSED... WOLF BLITZER AT CNN WARNED ABOUT JOB LOSS IF THE USGOVT STOPS ARMING SAUDI ARABIA... WAR CRIMES ARE OCCURRING IN A BIG WAY FOR THE YEMEN WAR, AND THE US-BASED ARMS SUPPLIERS ARE ACCOMPLICES... BLITZER SEEMS NOT TO CARE, OR NOT TO BE AWARE. $$$

Opposition has grown to block the $1.1 billion arms deal to Saudi Arabia. Senator Rand Paul (son of Ron Paul) leads the opposition, which cites the War Powers Act in both declaring war and acting as partner in war. The CNN harlot Wolf Blitzer bemoaned the risk of lost US jobs. One HTL client called Blitzer a joker delivering a twisted message, a true psychopath posing as a journalist. Agreed totally! The US nation thrives within the war material sector, the weapons manufacturers. The Fascist Business Model promotes war and enjoys profit from war. The conscience for aiding in war crimes in the Yemen War seems to be insignificant, when compared to the benefits of arms sales to blandly described allied nations. The US is being criticized widely for its sale of phosphorous bombs to the Saudis, who have been using them to attack hospitals in Yemen, basic war crimes. The result in burning victims to death with 10,000 degree heat impact. The US used the same burning agent in the Iraqi War, to kill thousands of civilians. The USMilitary wished to test the new weapon, a motive found back in the Vietnam War like with agent orange and cluster bombs.

The banker cabal or elements of the cabal have gone rogue, breaking all international laws with scant regard to humanity. As mentioned before, the Saudis bribed the United Nations, so as to avoid charges of war crimes in Yemen. No charges have come, no publicity either. The Saudis are protected by the USGovt, as long as they purchase US-made weapons for their dirty war. See Liberty Blitzkrieg (HERE) on the story Also see Zero Hedge (HERE) for the US suppliers on white phosphorous bombs.

In the Jackass book, Wolf Blitzer is a grand harlot. He was a direct observer at the site of the Minnesota Governor Wellstone murder via small plane crash in October 2002. He saw all the evidence of USGovt involvement. He saw the arrival of the FBI before anybody else, before all the press. They were part of the plot. They talked to him, and he promptly shut up. He continued his whorish career. The major network journalists are all rather similar in bowing to pressure, never telling the truth. They protect the leaders of all types and stripes. They are almost all harlots. They are actively lying though their teeth about numerous Hillary stories, protecting the fascist queen candidate.

◄$$$ THE THIRD WORLD CREEPS INTO VIEW WITHIN THE UNITED STATES AS YOUNG WOMEN RESORT TO PROSTITUTION IN ORDER TO EAT... YOUNG MEN RESORT TO THEFT AND DRUG DEALS... HUNGER IS THE NEWEST MOTIVE FOR SELLING THEIR BODIES, AN ADDED MOTIVE TO PAYING FOR COLLEGE TUITION ONE DECADE AGO... THE UNITED STATES IS GRADUALLY ENTERING THE THIRD WORLD. $$$

Teenagers in America are resorting to sex for income purposes because they cannot afford food, according to a new study about hunger in the United States. Focus groups in all 10 communities analyzed by the Urban Institute described girls selling their bodies or sex for money, used as a strategy to get by each month in managing costs. Boys desperate for food were said to go to extremes such as shoplifting and selling drugs. Evidence of teenage girls turning to transactional dating with older men is on the rise. The Jackass reported on such paid dating of older men back in 2011. The Urban Institute sponsored the report, called "Impossible Choices." Senior fellow Susan Popkin at the institute wrote, "I have been doing research in low income communities for a long time. I have written extensively about the experiences of women in high poverty communities and the risk of sexual exploitation. But this was new, even for me, who has been paying attention to this and has heard women tell their stories for a long time. The extent to which we were hearing about food being related to this vulnerability was new and shocking to me. The level of desperation that it implies was really shocking to me. It is a situation I think is just getting worse over time."

The qualitative study, carried out in partnership with the food banks network Feeding America, created two focus groups in each of 10 poor communities across the United States. One group was male, one female. The locations included big cities such as Chicago, Los Angeles, and Washington, but also rural North Carolina and eastern Oregon. A total of 193 participants aged 13 to 18 years took part and were allowed to remain anonymous. See Dollar Collapse (HERE). The United States is entering the Third World, as sex for food is an African trait.